We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HEINY vs. NAPA: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in Beverages - Alcohol stocks are likely familiar with Heineken NV (HEINY - Free Report) and The Duckhorn Portfolio, Inc. (NAPA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Heineken NV has a Zacks Rank of #2 (Buy), while The Duckhorn Portfolio, Inc. 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 HEINY has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HEINY currently has a forward P/E ratio of 20.28, while NAPA has a forward P/E of 33.40. We also note that HEINY has a PEG ratio of 1.42. 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. NAPA currently has a PEG ratio of 2.95.
Another notable valuation metric for HEINY is its P/B ratio of 2.46. 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. By comparison, NAPA has a P/B of 2.72.
These metrics, and several others, help HEINY earn a Value grade of B, while NAPA has been given a Value grade of D.
HEINY stands above NAPA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HEINY is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HEINY vs. NAPA: Which Stock Should Value Investors Buy Now?
Investors interested in Beverages - Alcohol stocks are likely familiar with Heineken NV (HEINY - Free Report) and The Duckhorn Portfolio, Inc. (NAPA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Heineken NV has a Zacks Rank of #2 (Buy), while The Duckhorn Portfolio, Inc. 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 HEINY has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HEINY currently has a forward P/E ratio of 20.28, while NAPA has a forward P/E of 33.40. We also note that HEINY has a PEG ratio of 1.42. 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. NAPA currently has a PEG ratio of 2.95.
Another notable valuation metric for HEINY is its P/B ratio of 2.46. 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. By comparison, NAPA has a P/B of 2.72.
These metrics, and several others, help HEINY earn a Value grade of B, while NAPA has been given a Value grade of D.
HEINY stands above NAPA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HEINY is the superior value option right now.