Here's Why Icon PLC (ICLR) is a Strong Value Stock

Zacks Equity Research
·2-min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Icon PLC (ICLR)

Founded in Dublin, Ireland, in 1990, ICON Public Limited Company (“ICON plc”) is a clinical research organization (CRO). The company is a provider of outsourced development and services to pharmaceutical, biotechnology, medical device and government and public health organizations.

ICLR is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 21.5X for the current fiscal year compared to the Medical Services industry's P/E of 19.7X. Additionally, ICLR has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 16.7X. Value investors should also note ICLR's Price/Sales ratio of 3.3X.

A company's earnings performance is important for value investors as well. For fiscal 2024, seven analysts revised their earnings estimate higher in the last 60 days for ICLR, while the Zacks Consensus Estimate has increased $0.10 to $15.07 per share. ICLR also holds an average earnings surprise of 0.8%.

ICLR should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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