Should Value Investors Buy OptimizeRx (OPRX) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

OptimizeRx (OPRX) is a stock many investors are watching right now. OPRX is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.

Investors should also note that OPRX holds a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OPRX's industry has an average PEG of 1.44 right now. Over the past 52 weeks, OPRX's PEG has been as high as 1.13 and as low as 0.33, with a median of 0.76.

Another notable valuation metric for OPRX is its P/B ratio of 2.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.43. Within the past 52 weeks, OPRX's P/B has been as high as 2.94 and as low as 0.61, with a median of 1.25.

Value investors will likely look at more than just these metrics, but the above data helps show that OptimizeRx is likely undervalued currently. And when considering the strength of its earnings outlook, OPRX sticks out as one of the market's strongest value stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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