Are Investors Undervaluing Dynavax Technologies (DVAX) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Dynavax Technologies (DVAX). DVAX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 56.53, while its industry has an average P/E of 85.62. DVAX's Forward P/E has been as high as 58.85 and as low as 8.44, with a median of 16.91, all within the past year.

Finally, investors will want to recognize that DVAX has a P/CF ratio of 5.77. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.17. Within the past 12 months, DVAX's P/CF has been as high as 25.68 and as low as -79.76, with a median of 10.41.

If you're looking for another solid Medical - Biomedical and Genetics value stock, take a look at Vir Biotechnology (VIR). VIR is a # 2 (Buy) stock with a Value score of A.

Shares of Vir Biotechnology are currently trading at a forward earnings multiple of -12.34 and a PEG ratio of -5.79 compared to its industry's P/E and PEG ratios of 85.62 and 5, respectively.

Over the last 12 months, VIR's P/E has been as high as 3,855.59, as low as -647.04, with a median of 3.26, and its PEG ratio has been as high as 349.87, as low as -58.71, with a median of 0.45.

Furthermore, Vir Biotechnology holds a P/B ratio of 1.58 and its industry's price-to-book ratio is 2.83. VIR's P/B has been as high as 8.05, as low as 1.19, with a median of 1.89 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Dynavax Technologies and Vir Biotechnology are likely undervalued currently. And when considering the strength of its earnings outlook, DVAX and VIR sticks out as one of the market's strongest value stocks.

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