Investors looking for stocks in the Medical Services sector might want to consider either AMN Healthcare Services (AMN) or Progyny (PGNY). But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
AMN Healthcare Services and Progyny are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMN has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
AMN currently has a forward P/E ratio of 11.17, while PGNY has a forward P/E of 457.22. We also note that AMN has a PEG ratio of 10.06. 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. PGNY currently has a PEG ratio of 21.71.
Another notable valuation metric for AMN is its P/B ratio of 5.07. 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, PGNY has a P/B of 12.16.
Based on these metrics and many more, AMN holds a Value grade of A, while PGNY has a Value grade of D.
AMN 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 AMN is likely the superior value option right now.
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AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
Progyny, Inc. (PGNY) : Free Stock Analysis Report
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