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Are Investors Undervaluing Lexicon Pharmaceuticals (LXRX) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Lexicon Pharmaceuticals (LXRX - Free Report) is a stock many investors are watching right now. LXRX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that LXRX has a P/B ratio of 2.26. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. LXRX's current P/B looks attractive when compared to its industry's average P/B of 3.24. Over the past year, LXRX's P/B has been as high as 2.59 and as low as -32.32, with a median of -13.77.

Finally, investors will want to recognize that LXRX has a P/CF ratio of 2.07. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LXRX's P/CF compares to its industry's average P/CF of 7.38. Over the past year, LXRX's P/CF has been as high as 2.37 and as low as -8.42, with a median of -6.04.

These are only a few of the key metrics included in Lexicon Pharmaceuticals's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LXRX looks like an impressive value stock at the moment.


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