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.
HUN or PX: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Huntsman (HUN - Free Report) and Praxair (PX - 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, Huntsman is sporting a Zacks Rank of #2 (Buy), while Praxair 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 HUN has an improving earnings outlook. But this is just one piece of the puzzle 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.
HUN currently has a forward P/E ratio of 9.24, while PX has a forward P/E of 24.70. We also note that HUN has a PEG ratio of 1.12. 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. PX currently has a PEG ratio of 2.15.
Another notable valuation metric for HUN is its P/B ratio of 1.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PX has a P/B of 6.96.
Based on these metrics and many more, HUN holds a Value grade of A, while PX has a Value grade of D.
HUN sticks out from PX in both our Zacks Rank and Style Scores models, so value investors will likely feel that HUN is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HUN or PX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Huntsman (HUN - Free Report) and Praxair (PX - 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, Huntsman is sporting a Zacks Rank of #2 (Buy), while Praxair 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 HUN has an improving earnings outlook. But this is just one piece of the puzzle 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.
HUN currently has a forward P/E ratio of 9.24, while PX has a forward P/E of 24.70. We also note that HUN has a PEG ratio of 1.12. 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. PX currently has a PEG ratio of 2.15.
Another notable valuation metric for HUN is its P/B ratio of 1.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PX has a P/B of 6.96.
Based on these metrics and many more, HUN holds a Value grade of A, while PX has a Value grade of D.
HUN sticks out from PX in both our Zacks Rank and Style Scores models, so value investors will likely feel that HUN is the better option right now.