Core Insights - Elanco Animal Health Incorporated (ELAN) is currently positioned as a more attractive investment compared to U.S. Physical Therapy (USPH) based on Zacks Rank and valuation metrics [3][7] Valuation Metrics - ELAN has a forward P/E ratio of 17.91, significantly lower than USPH's forward P/E of 30.39 [5] - The PEG ratio for ELAN is 2.93, while USPH's PEG ratio stands at 3.66, indicating ELAN's better valuation relative to its expected earnings growth [5] - ELAN's P/B ratio is 1.17, compared to USPH's P/B of 2.3, further supporting ELAN's superior valuation metrics [6] Earnings Outlook - ELAN has a Zacks Rank of 2 (Buy), reflecting positive revisions in earnings estimates, while USPH has a Zacks Rank of 5 (Strong Sell), indicating a less favorable earnings outlook [3][7] - The improving earnings outlook for ELAN is a critical factor for value investors [3]

Core Insights - Elanco Animal Health Incorporated (ELAN) is currently rated 2 (Buy) by Zacks Rank, indicating a stronger earnings outlook compared to U.S. Physical Therapy (USPH), which is rated 3 (Hold) [3] - Value investors utilize various metrics to assess whether a stock is undervalued, including P/E ratio, P/S ratio, and cash flow per share [4] Valuation Metrics - ELAN has a forward P/E ratio of 16.67, significantly lower than USPH's forward P/E of 31.62, suggesting that ELAN may be undervalued [5] - The PEG ratio for ELAN is 2.73, while USPH's PEG ratio is higher at 3.81, indicating that ELAN's expected earnings growth is more favorable relative to its price [5] - ELAN's P/B ratio stands at 1.09, compared to USPH's P/B of 2.39, further supporting the notion that ELAN is a more attractive value option [6] Overall Assessment - Based on the improving earnings outlook and favorable valuation metrics, ELAN is positioned as the superior value investment compared to USPH [7]