Yahoo Finance Why Doctor Reddy's (RDY) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
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.
Doctor Reddy's (RDY)
India-based Dr. Reddy’s Laboratories Ltd. is an integrated global pharmaceutical company engaged in providing affordable and innovative medicines since 1984. The company markets its products in countries like the U.S., UK, Germany, India, Russia, Venezuela, Romania and South Africa. Dr. Reddy’s operates through three segments: • Global Generics – This segment consists of unbranded prescription drugs along with over-the-counter (OTC) drugs. It includes the operations of the company’s biologics business. The segment accounted for about 87% of the company’s total revenues generated in the fiscal year 2023.
RDY is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 17.2X for the current fiscal year compared to the Medical - Generic Drugs industry's P/E of 11.4X. Additionally, RDY has a PEG Ratio of 1.8 and a Price/Cash Flow ratio of 14.1X. Value investors should also note RDY's Price/Sales ratio of 3.5X.
A company's earnings performance is important for value investors as well. For fiscal 2025, one analyst revised their earnings estimate higher in the last 60 days for RDY, while the Zacks Consensus Estimate has increased $0.03 to $4.15 per share. RDY also holds an average earnings surprise of 22.4%.
Investors should take the time to consider RDY for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Dr. Reddy's Laboratories Ltd (RDY) : Free Stock Analysis Report
