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2 top value stocks you should consider buying right now

With the likes of Apple and Sainsbury’s having grabbed the headlines in mid-week trade, some lesser-known stocks have flown under the radar despite releasing interesting financials of their own.

FTSE 250 pharma play Indivior (LSE: INDV), for instance, was last 1.5% lower from Tuesday’s close in spite of solid quarterly numbers. Consumer credit provider International Personal Finance (LSE: IPF) performed better but was up just 1.3% following its own market update.

I reckon the market may have missed a trick here, however.

Drugs destroyer

Indivior — which produces treatments to combat opioid addiction – announced today that net revenues rose 3% during January-March, to $265m, thanks to the explosive market growth currently being enjoyed in the US.

The strong first-quarter performance helped adjusted net income rise 46% year-on-year to $80m.

Indivior is the major player in treating opioid addiction, and commands a 60% market share in the US, helped in some part by disappointing product launches from its competitors in recent times.

And Indivior’s exceptional pipeline should see the firm maintain its stranglehold on the market. Its RBP-6000 product — a monthly depot injection which is expected to be filed by regulators in the current quarter — is considered to be the standout drug currently in development as it provides total opioid blockage.

With the medicines firm lacking opportunities to gain market share in the near term, the City expects Indivior to endure a 6% earnings fall this year. However, steadily-growing demand for its products is expected to produce a 5% earnings bounce in 2018.

And I reckon a forward P/E ratio of 13.3 times, below the broadly-considered value benchmark of 15 times or below, makes Indivior a great growth pick that should sate the appetite of value chasers.

Credit colossus

For risk-averse investors, multinational credit provider International Personal Finance (LSE: IPF) may be considered a gamble too far due to regulatory pressures in Europe. Still, some stock hunters may consider the stock worthy of serious attention at current prices.

IPF’s recent earnings woes are expected to rumble on a little longer, and a third consecutive drop (this time by 6%) is chalked-in for 2017. But the firm is expected to finally fire back with a 2% rise in 2018.

And the credit colossus can be considered exceptional value for money based on these forecasts. Well, on paper at least. Not only does IPF carry a mere forward P/E ratio of 5.7 times, but a predicted 13p per share dividend for 2017 yields a smashing 8%.

IPF reported today that credit growth expanded 5% during January-March, although a 20% explosion in Mexico was offset by weakness in its core European regions. Credit issuance on the continent actually shrank 7% in the period, with competitive troubles in the Czech Republic and Poland, and regulatory troubles in the latter region as well as Romania, damaging customer numbers.

The language surrounding IPF’s discussions with the Polish Ministry of Justice on price caps has warmed more recently, boosting hopes of a positive outcome in this key market, which would provide the company’s growth outlook with a massive boost.

While the business is not out of the woods by any means, I reckon IPF could still offer plenty of upside for brave share pickers, and particularly at current prices.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.