Are Investors Undervaluing Assertio (ASRT) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Assertio (ASRT). ASRT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Another notable valuation metric for ASRT is its P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus 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 1.10. Within the past 52 weeks, ASRT's P/B has been as high as 1.42 and as low as 0.47, with a median of 1.01.
Finally, investors should note that ASRT has a P/CF ratio of 2.18. 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. ASRT's P/CF compares to its industry's average P/CF of 8.01. ASRT's P/CF has been as high as 4.86 and as low as -76.48, with a median of 3.02, all within the past year.
ProPhase Labs (PRPH) may be another strong Medical - Drugs stock to add to your shortlist. PRPH is a # 2 (Buy) stock with a Value grade of A.
Additionally, ProPhase Labs has a P/B ratio of 2.67 while its industry's price-to-book ratio sits at 1.10. For PRPH, this valuation metric has been as high as 3.34, as low as 1.52, with a median of 2.04 over the past year.
These are only a few of the key metrics included in Assertio and ProPhase Labs strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ASRT and PRPH look like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Assertio Holdings, Inc. (ASRT) : Free Stock Analysis Report
ProPhase Labs, Inc. (PRPH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
