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TXT vs. EADSY: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Aerospace - Defense sector have probably already heard of Textron (TXT - Free Report) and Airbus Group (EADSY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Textron is sporting a Zacks Rank of #1 (Strong Buy), while Airbus Group 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 TXT has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
TXT currently has a forward P/E ratio of 14.43, while EADSY has a forward P/E of 22.29. We also note that TXT has a PEG ratio of 1.23. 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. EADSY currently has a PEG ratio of 1.80.
Another notable valuation metric for TXT is its P/B ratio of 2.41. 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, EADSY has a P/B of 7.69.
These are just a few of the metrics contributing to TXT's Value grade of B and EADSY's Value grade of C.
TXT has seen stronger estimate revision activity and sports more attractive valuation metrics than EADSY, so it seems like value investors will conclude that TXT is the superior option right now.
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TXT vs. EADSY: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Aerospace - Defense sector have probably already heard of Textron (TXT - Free Report) and Airbus Group (EADSY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Textron is sporting a Zacks Rank of #1 (Strong Buy), while Airbus Group 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 TXT has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
TXT currently has a forward P/E ratio of 14.43, while EADSY has a forward P/E of 22.29. We also note that TXT has a PEG ratio of 1.23. 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. EADSY currently has a PEG ratio of 1.80.
Another notable valuation metric for TXT is its P/B ratio of 2.41. 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, EADSY has a P/B of 7.69.
These are just a few of the metrics contributing to TXT's Value grade of B and EADSY's Value grade of C.
TXT has seen stronger estimate revision activity and sports more attractive valuation metrics than EADSY, so it seems like value investors will conclude that TXT is the superior option right now.