Should Value Investors Buy Amphastar Pharmaceuticals (AMPH) Stock?

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.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.One company value investors might notice is Amphastar Pharmaceuticals (AMPH). AMPH is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.81, while its industry has an average P/E of 11.72. Over the past year, AMPH's Forward P/E has been as high as 12.02 and as low as 6.09, with a median of 8.31. Another notable valuation metric for AMPH is its P/B ratio of 1.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.63. Over the past 12 months, AMPH's P/B has been as high as 3.57 and as low as 1.28, with a median of 1.87.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMPH has a P/S ratio of 1.49. This compares to its industry's average P/S of 3.6.Finally, we should also recognize that AMPH has a P/CF ratio of 6.90. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMPH's P/CF compares to its industry's average P/CF of 19.14. Over the past 52 weeks, AMPH's P/CF has been as high as 12.69 and as low as 5.15, with a median of 7.33.Value investors will likely look at more than just these metrics, but the above data helps show that Amphastar Pharmaceuticals is likely undervalued currently. And when considering the strength of its earnings outlook, AMPH sticks out as one of the market's strongest value stocks.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphastar Pharmaceuticals, Inc. (AMPH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks