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ITRI or TER: Which Is the Better Value Stock Right Now?
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Investors interested in Electronics - Testing Equipment stocks are likely familiar with Itron (ITRI - Free Report) and Teradyne (TER - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Itron is sporting a Zacks Rank of #2 (Buy), while Teradyne has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ITRI likely has seen a stronger improvement to its earnings outlook than TER has recently. But this is just one piece of the puzzle 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 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.
ITRI currently has a forward P/E ratio of 25.09, while TER has a forward P/E of 32.32. We also note that ITRI has a PEG ratio of 1.09. 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. TER currently has a PEG ratio of 5.39.
Another notable valuation metric for ITRI is its P/B ratio of 2.54. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TER has a P/B of 5.78.
These metrics, and several others, help ITRI earn a Value grade of A, while TER has been given a Value grade of C.
ITRI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ITRI is likely the superior value option right now.
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ITRI or TER: Which Is the Better Value Stock Right Now?
Investors interested in Electronics - Testing Equipment stocks are likely familiar with Itron (ITRI - Free Report) and Teradyne (TER - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Itron is sporting a Zacks Rank of #2 (Buy), while Teradyne has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ITRI likely has seen a stronger improvement to its earnings outlook than TER has recently. But this is just one piece of the puzzle 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 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.
ITRI currently has a forward P/E ratio of 25.09, while TER has a forward P/E of 32.32. We also note that ITRI has a PEG ratio of 1.09. 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. TER currently has a PEG ratio of 5.39.
Another notable valuation metric for ITRI is its P/B ratio of 2.54. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TER has a P/B of 5.78.
These metrics, and several others, help ITRI earn a Value grade of A, while TER has been given a Value grade of C.
ITRI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ITRI is likely the superior value option right now.