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Here's Why United Therapeutics (UTHR) is a Strong Value Stock

Zacks Equity Research
·2 min read

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.

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United Therapeutics (UTHR)

Silver Spring, MD-based United Therapeutics Corporation markets four medicines in the United States to treat pulmonary arterial hypertension (PAH): Remodulin, an injectable formulation of treprostinil, Orenitram, an oral version of treprostinil, Tyvaso, an inhaled version of treprostinil, and Adcirca (tadalafil; also sold by Eli Lilly as Cialis for erectile dysfunction) tablets. Remodulin is approved for both subcutaneous (SC) and intravenous (IV) use.

UTHR sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Medical - Drugs industry's P/E of 13.6X, shares of United Therapeutics are trading at a forward P/E of 11.4X. UTHR also has a PEG Ratio of 4.2, a Price/Cash Flow ratio of 12.5X, and a Price/Sales ratio of 4.9X.

Many value investors pay close attention to a company's earnings as well. For UTHR, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.88 to $24.20 per share for 2024. Per share UTHR boasts an average earnings surprise of 12.4%.

UTHR 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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United Therapeutics Corporation (UTHR) : Free Stock Analysis Report

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Zacks Investment Research