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WERN or JBHT: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Transportation - Truck sector have probably already heard of Werner Enterprises (WERN - Free Report) and JB Hunt (JBHT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Werner Enterprises has a Zacks Rank of #2 (Buy), while JB Hunt has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WERN has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

WERN currently has a forward P/E ratio of 10.85, while JBHT has a forward P/E of 23.07. We also note that WERN has a PEG ratio of 0.97. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. JBHT currently has a PEG ratio of 1.54.

Another notable valuation metric for WERN is its P/B ratio of 2.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, JBHT has a P/B of 6.68.

These metrics, and several others, help WERN earn a Value grade of B, while JBHT has been given a Value grade of C.

WERN has seen stronger estimate revision activity and sports more attractive valuation metrics than JBHT, so it seems like value investors will conclude that WERN is the superior option right now.


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J.B. Hunt Transport Services, Inc. (JBHT) - free report >>

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