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Are Investors Undervaluing Astellas Pharma (ALPMY) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Astellas Pharma (ALPMY - Free Report) is a stock many investors are watching right now. ALPMY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that ALPMY holds a PEG ratio of 1.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALPMY's industry currently sports an average PEG of 2.21. Over the past 52 weeks, ALPMY's PEG has been as high as 2.61 and as low as 0.64, with a median of 1.25.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ALPMY has a P/S ratio of 1.81. This compares to its industry's average P/S of 3.06.

These are only a few of the key metrics included in Astellas Pharma's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ALPMY looks like an impressive value stock at the moment.


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