Are Investors Undervaluing Puma Biotechnology (PBYI) Right Now?

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.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.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.One stock to keep an eye on is Puma Biotechnology (PBYI). PBYI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.We also note that PBYI holds a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PBYI's industry currently sports an average PEG of 3.07. Over the last 12 months, PBYI's PEG has been as high as 1.86 and as low as 1.17, with a median of 1.58.Investors should also recognize that PBYI has a P/B ratio of 2.06. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.29. Over the past year, PBYI's P/B has been as high as 5.87 and as low as 1.67, with a median of 2.59.Finally, investors should note that PBYI has a P/CF ratio of 4.22. 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 current P/CF looks attractive when compared to its industry's average P/CF of 13.37. Within the past 12 months, PBYI's P/CF has been as high as 10.44 and as low as 3.42, with a median of 5.95.These figures are just a handful of the metrics value investors tend to look at, but they help show that Puma Biotechnology is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBYI feels like a great value stock at the moment.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 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