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Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Halozyme Therapeutics (HALO) and Amicus Therapeutics (FOLD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Halozyme Therapeutics has a Zacks Rank of #2 (Buy), while Amicus Therapeutics has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HALO likely has seen a stronger improvement to its earnings outlook than FOLD has recently. But this is only part of the picture for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
HALO currently has a forward P/E ratio of 10.63, while FOLD has a forward P/E of 42.62. We also note that HALO has a PEG ratio of 0.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FOLD currently has a PEG ratio of 0.94.
Another notable valuation metric for HALO is its P/B ratio of 11.96. The 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. By comparison, FOLD has a P/B of 16.14.
These metrics, and several others, help HALO earn a Value grade of A, while FOLD has been given a Value grade of D.
HALO 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 HALO is likely the superior value option right now.
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Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report
Amicus Therapeutics, Inc. (FOLD) : Free Stock Analysis Report