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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Catalyst Pharmaceuticals (CPRX). CPRX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Investors will also notice that CPRX has a PEG ratio of 0.72. 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. CPRX's industry has an average PEG of 1.90 right now. CPRX's PEG has been as high as 3.40 and as low as 0.63, with a median of 1.06, all within the past year.
Finally, our model also underscores that CPRX has a P/CF ratio of 10.23. 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. CPRX's P/CF compares to its industry's average P/CF of 13.88. CPRX's P/CF has been as high as 25.41 and as low as 10.16, with a median of 13.48, all within the past year.
These are just a handful of the figures considered in Catalyst Pharmaceuticals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CPRX is an impressive value stock right now.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
