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ASRT or AMRX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Drugs stocks have likely encountered both Assertio (ASRT - Free Report) and Amneal Pharmaceuticals (AMRX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Assertio and Amneal Pharmaceuticals are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that ASRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASRT currently has a forward P/E ratio of 3.42, while AMRX has a forward P/E of 5.19. We also note that ASRT has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMRX currently has a PEG ratio of 0.29.
Another notable valuation metric for ASRT is its P/B ratio of 0.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMRX has a P/B of 1.32.
These are just a few of the metrics contributing to ASRT's Value grade of B and AMRX's Value grade of D.
ASRT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ASRT is likely the superior value option right now.
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ASRT or AMRX: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Drugs stocks have likely encountered both Assertio (ASRT - Free Report) and Amneal Pharmaceuticals (AMRX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Assertio and Amneal Pharmaceuticals are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that ASRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASRT currently has a forward P/E ratio of 3.42, while AMRX has a forward P/E of 5.19. We also note that ASRT has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMRX currently has a PEG ratio of 0.29.
Another notable valuation metric for ASRT is its P/B ratio of 0.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMRX has a P/B of 1.32.
These are just a few of the metrics contributing to ASRT's Value grade of B and AMRX's Value grade of D.
ASRT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ASRT is likely the superior value option right now.