Horizon Therapeutics (HZNP) is a Top-Ranked Value Stock: Should You Buy?
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Horizon Therapeutics (HZNP)
Dublin, Ireland-based Horizon Therapeutics plc, previously known as Horizon Pharma plc, is a biopharmaceutical focused on making drugs in arthritis, pain, inflammatory and orphan diseases areas. Horizon Therapeutics (Horizon) was formed in September 2014, after Horizon, and Vidara acquired Ireland-based privately held specialty pharmaceutical company, Vidara Therapeutics International Ltd. through a reverse merger. On May 2, 2019, shareholders approved the change of the company’s name to Horizon Therapeutics. This move caters to the company’s long-term strategy to develop and commercialize innovative medicines addressing rare diseases, which currently have very few effective treatment options.
HZNP sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Medical - Biomedical and Genetics industry's P/E of 21.2X, shares of Horizon Therapeutics are trading at a forward P/E of 16.5X. HZNP also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 12X, and a Price/Sales ratio of 4.7X.
Many value investors pay close attention to a company's earnings as well. For HZNP, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $4.68 per share for 2022. Per share HZNP boasts an average earnings surprise of 8%.
HZNP 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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Horizon Therapeutics Public Limited Company (HZNP) : Free Stock Analysis Report
