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Here's Why United Therapeutics (UTHR) is a Strong Value Stock
United TherapeuticsUnited Therapeutics(US:UTHR) zacks.comยท2024-05-22 14:40

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score assesses a company's future prospects through projected earnings, sales, and cash flow [5] Momentum Score - The Momentum Score identifies stocks with favorable price trends using recent price changes and earnings estimate revisions [6] VGM Score - The VGM Score combines all three Style Scores, highlighting stocks with attractive value, growth, and momentum characteristics [7] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Stock to Watch: United Therapeutics (UTHR) - United Therapeutics Corporation specializes in treatments for pulmonary arterial hypertension (PAH) with four marketed medicines [12] - UTHR holds a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of B, supported by a forward P/E ratio of 11.37 [13] - Recent upward revisions in earnings estimates have increased the Zacks Consensus Estimate to $24.20 per share, with an average earnings surprise of 12.4% [13][14]