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Is Mylan (MYL) a Great Value Stock Right Now?

Zacks

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.

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 Mylan (MYL). MYL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.66. This compares to its industry’s average Forward P/E of 8.01. Over the past year, MYL’s Forward P/E has been as high as 9.70 and as low as 5.16, with a median of 7.16.


Investors should also note that MYL holds a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company’s expected earnings growth rate. MYL’s industry has an average PEG of 1.02 right now. Over the last 12 months, MYL’s PEG has been as high as 3.29 and as low as 0.80, with a median of 1.10.

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 prefered metric because revenue can’t really be manipulated, so sales are often a truer performance indicator. MYL has a P/S ratio of 1.32. This compares to its industry’s average P/S of 2.03.

These are just a handful of the figures considered in Mylan’s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MYL is an impressive value stock right now.


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