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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Puma Biotechnology (PBYI). PBYI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that PBYI holds a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PBYI's industry currently sports an average PEG of 3.07. Over the last 12 months, PBYI's PEG has been as high as 1.86 and as low as 1.17, with a median of 1.58.
Investors should also recognize that PBYI has a P/B ratio of 2.06. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.29. Over the past year, PBYI's P/B has been as high as 5.87 and as low as 1.67, with a median of 2.59.
Finally, investors should note that PBYI has a P/CF ratio of 4.22. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PBYI's current P/CF looks attractive when compared to its industry's average P/CF of 13.37. Within the past 12 months, PBYI's P/CF has been as high as 10.44 and as low as 3.42, with a median of 5.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Puma Biotechnology is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBYI feels like a great value stock at the moment.