Here's Why United Therapeutics (UTHR) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
United Therapeutics (UTHR)
Silver Spring, MD-based United Therapeutics Corporation markets four medicines in the United States to treat pulmonary arterial hypertension (PAH): Remodulin, an injectable formulation of treprostinil, Orenitram, an oral version of treprostinil, Tyvaso, an inhaled version of treprostinil, and Adcirca (tadalafil; also sold by Eli Lilly as Cialis for erectile dysfunction) tablets. Remodulin is approved for both subcutaneous (SC) and intravenous (IV) use.
UTHR is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 13.6X for the current fiscal year compared to the Medical - Drugs industry's P/E of 16.4X. Additionally, UTHR has a PEG Ratio of 5.2 and a Price/Cash Flow ratio of 20.1X. Value investors should also note UTHR's Price/Sales ratio of 6X.
Many value investors pay close attention to a company's earnings as well. For UTHR, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.42 to $17.19 per share for 2022. Per share UTHR boasts an average earnings surprise of 15.3%.
UTHR should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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