Nyse Order Imbalance 54195.0 Shares On Sell Side

Investors with an interest in Medical - Drugs stocks have likely encountered both Catalyst Pharmaceutical (CPRX) and Stevanato Group (STVN). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Catalyst Pharmaceutical has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CPRX is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

CPRX currently has a forward P/E ratio of 11.45, while STVN has a forward P/E of 45.23. We also note that CPRX has a PEG ratio of 3.32. 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. STVN currently has a PEG ratio of 10.28.

Another notable valuation metric for CPRX is its P/B ratio of 4.26. 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. By comparison, STVN has a P/B of 5.42.

These are just a few of the metrics contributing to CPRX's Value grade of B and STVN's Value grade of D.

CPRX has seen stronger estimate revision activity and sports more attractive valuation metrics than STVN, so it seems like value investors will conclude that CPRX is the superior option right now.

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