Should Value Investors Buy Puma Biotechnology (PBYI) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One stock to keep an eye on is Puma Biotechnology (PBYI). PBYI is currently sporting a Zacks Rank #2 (Buy) and an A for Value. Investors will also notice that PBYI has a PEG ratio of 1.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PBYI's PEG compares to its industry's average PEG of 2.68. Over the past 52 weeks, PBYI's PEG has been as high as 0.00 and as low as 0.00, with a median of 0.00. Investors should also recognize that PBYI has a P/B ratio of 1.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PBYI's current P/B looks attractive when compared to its industry's average P/B of 3.13. PBYI's P/B has been as high as 4.07 and as low as 1.40, with a median of 1.94, over the past year.Finally, investors will want to recognize that PBYI has a P/CF ratio of 3.63. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PBYI's P/CF compares to its industry's average P/CF of 8.31. Over the past year, PBYI's P/CF has been as high as 9.59 and as low as 2.76, with a median of 4.05.Value investors will likely look at more than just these metrics, but the above data helps show that Puma Biotechnology is likely undervalued currently. And when considering the strength of its earnings outlook, PBYI sticks out as one of the market's strongest value stocks.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Puma Biotechnology, Inc. (PBYI): 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