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Should Value Investors Buy Siga Technologies (SIGA) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Siga Technologies (SIGA - Free Report) . SIGA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SIGA has a P/S ratio of 2.86. This compares to its industry's average P/S of 3.18.

Finally, our model also underscores that SIGA has a P/CF ratio of 5.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.22. Over the past year, SIGA's P/CF has been as high as 10.16 and as low as -99.49, with a median of 6.41.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Siga Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SIGA feels like a great value stock at the moment.


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