United Therapeutics (UTHR) is a Top-Ranked Value Stock: Should You Buy?
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out 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 #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 16.9X for the current fiscal year compared to the Medical - Drugs industry's P/E of 16.7X. Additionally, UTHR has a PEG Ratio of 1.9 and a Price/Cash Flow ratio of 24X. Value investors should also note UTHR's Price/Sales ratio of 6.9X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $1.77 to $16.61 per share. UTHR has an average earnings surprise of 7.2%.
Investors should take the time to consider UTHR for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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United Therapeutics Corporation (UTHR) : Free Stock Analysis Report
