Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

March 4, 2025

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.

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.

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.

Alameda, CA-based Exelixis, Inc. is an oncology-focused biotechnology company that primarily focuses on the discovery, development and commercialization of new drugs for the treatment of difficult-to-treat cancers. The company is leveraging its investments, expertise and strategic partnerships to target an expanding range of tumor types and indications with its clinically differentiated pipeline of small molecules, antibody-drug conjugates (ADCs) and other biotherapeutics.

EXEL boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Shares of Exelixis are trading at a forward earnings multiple of 16.7X, as well as a PEG Ratio of 1.1, a Price/Cash Flow ratio of 20X, and a Price/Sales ratio of 5X.

A company’s earnings performance is important for value investors as well. For fiscal 2025, 10 analysts revised their earnings estimate higher in the last 60 days for EXEL, while the Zacks Consensus Estimate has increased $0.31 to $2.31 per share. EXEL also holds an average earnings surprise of 26.9%.

Investors should take the time to consider EXEL 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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Exelixis, Inc. (EXEL) : Free Stock Analysis Report

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

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