Why Doctor Reddy's (RDY) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
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
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Doctor Reddy's (RDY)
India-based Dr. Reddy’s Laboratories Ltd. is an integrated global pharmaceutical company engaged in providing affordable and innovative medicines since 1984. The company markets its products in countries like the U.S., UK, Germany, India, Russia, Venezuela, Romania and South Africa. Dr. Reddy’s operates through three segments: • Global Generics – This segment consists of unbranded prescription drugs along with over-the-counter (OTC) drugs. It includes the operations of the company’s biologics business. The segment accounted for about 87% of the company’s total revenues generated in the fiscal year 2023.
RDY is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 19.4X for the current fiscal year compared to the Medical - Generic Drugs industry's P/E of 14.7X. Additionally, RDY has a PEG Ratio of 2 and a Price/Cash Flow ratio of 18.2X. Value investors should also note RDY's Price/Sales ratio of 3.9X.
A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for RDY, while the Zacks Consensus Estimate has increased $0.10 to $3.96 per share. RDY also holds an average earnings surprise of 25.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding RDY to their portfolios.
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Dr. Reddy's Laboratories Ltd (RDY) : Free Stock Analysis Report
