Is Innoviva (INVA) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Innoviva (INVA) is a stock many investors are watching right now. INVA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.13, which compares to its industry's average of 17.97. INVA's Forward P/E has been as high as 13.05 and as low as 3.81, with a median of 8.48, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. INVA has a P/S ratio of 2.53. This compares to its industry's average P/S of 4.73.
If you're looking for another solid Large Cap Pharmaceuticals value stock, take a look at Sanofi (SNY). SNY is a # 2 (Buy) stock with a Value score of A.
Sanofi is trading at a forward earnings multiple of 12.36 at the moment, with a PEG ratio of 1.67. This compares to its industry's average P/E of 17.97 and average PEG ratio of 1.79.
SNY's price-to-earnings ratio has been as high as 13.36 and as low as 8.75, with a median of 11.04, while its PEG ratio has been as high as 1.67 and as low as 0.91, with a median of 1.13, all within the past year.
Additionally, Sanofi has a P/B ratio of 1.79 while its industry's price-to-book ratio sits at 5.94. For SNY, this valuation metric has been as high as 1.79, as low as 1.24, with a median of 1.53 over the past year.
These are only a few of the key metrics included in Innoviva and Sanofi strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, INVA and SNY look like an impressive value stock at the moment.
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Innoviva, Inc. (INVA) : Free Stock Analysis Report
Sanofi (SNY) : Free Stock Analysis Report
