At Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks, but we always look at the latest value, growth and momentum trends to highlight strong picks.
Of these stock market trends, perhaps none is more popular than value investing. Value investing is a strategy that has proven to be successful in any market environment. Value investors rely on traditional methods of analysis on key valuation metrics to find stocks that they believe to be undervalued and have room to make profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the “Value” category of the system. Stocks with “A” grades for Value and high Zacks Ranks are among the best value stocks available at any given time.
Puma Biotechnology (PBYI) is a stock that many investors have their eyes on right now, as PBYI is currently sporting a Zacks Rank #2 (Buy) and an A grade for Value.
Investors should also be aware that PBYI has a P/B ratio of 3.46. P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. PBYI’s current P/B compares attractively to the industry average P/B of 4.60. Over the past year, its P/B has been as high as 6.59 and as low as 2.74, with a median of 4.62.
Finally, investors should note that PBYI has a P/CF ratio of 6.55. This metric focuses on a company’s operating cash flow and is often used to find undervalued stocks based on the strength of their cash outlook. PBYI’s P/CF compares to an industry average P/CF of 17.24. PBYI’s P/CF has been as high as 24.91 and as low as 5.23, with a median of 8.74 over the past year.
These figures are just a few of the metrics value investors pay attention to, but they show that Puma Biotechnology is likely currently undervalued. Taking this into account, along with the strength of its earnings outlook, PBYI looks like a very good value stock right now.
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Puma Biotechnology Inc. (PBYI) : Free Stock Analysis Report
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