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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

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.

Exelixis (EXEL)

San Francisco, CA-based Exelixis, Inc. is an oncology-focused biotechnology company, which primarily focuses on the discovery, development and commercialization of new drugs for the treatment of difficult-to-treat cancers.

EXEL sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Medical - Biomedical and Genetics industry's P/E of 21.8X, shares of Exelixis are trading at a forward P/E of 25.6X. EXEL also has a PEG Ratio of 0.7, a Price/Cash Flow ratio of 29.4X, and a Price/Sales ratio of 5.1X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.06 to $0.89 per share. EXEL has an average earnings surprise of 169.4%.

EXEL 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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