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GIS vs. NSRGY: Which Stock Should Value Investors Buy Now?
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Investors interested in Food - Miscellaneous stocks are likely familiar with General Mills (GIS - Free Report) and Nestle SA (NSRGY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, General Mills has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GIS likely has seen a stronger improvement to its earnings outlook than NSRGY has recently. But this is only part of the picture for value investors.
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.
GIS currently has a forward P/E ratio of 19.48, while NSRGY has a forward P/E of 25.20. We also note that GIS has a PEG ratio of 2.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NSRGY currently has a PEG ratio of 3.07.
Another notable valuation metric for GIS is its P/B ratio of 4.32. 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, NSRGY has a P/B of 5.87.
Based on these metrics and many more, GIS holds a Value grade of B, while NSRGY has a Value grade of C.
GIS has seen stronger estimate revision activity and sports more attractive valuation metrics than NSRGY, so it seems like value investors will conclude that GIS is the superior option right now.
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GIS vs. NSRGY: Which Stock Should Value Investors Buy Now?
Investors interested in Food - Miscellaneous stocks are likely familiar with General Mills (GIS - Free Report) and Nestle SA (NSRGY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, General Mills has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GIS likely has seen a stronger improvement to its earnings outlook than NSRGY has recently. But this is only part of the picture for value investors.
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.
GIS currently has a forward P/E ratio of 19.48, while NSRGY has a forward P/E of 25.20. We also note that GIS has a PEG ratio of 2.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NSRGY currently has a PEG ratio of 3.07.
Another notable valuation metric for GIS is its P/B ratio of 4.32. 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, NSRGY has a P/B of 5.87.
Based on these metrics and many more, GIS holds a Value grade of B, while NSRGY has a Value grade of C.
GIS has seen stronger estimate revision activity and sports more attractive valuation metrics than NSRGY, so it seems like value investors will conclude that GIS is the superior option right now.