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WERN or HTLD: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Transportation - Truck sector might want to consider either Werner Enterprises (WERN - Free Report) or Heartland Express (HTLD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Werner Enterprises is sporting a Zacks Rank of #2 (Buy), while Heartland Express has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WERN is likely seeing its earnings outlook improve to a greater extent. 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.
WERN currently has a forward P/E ratio of 18.78, while HTLD has a forward P/E of 27.81. We also note that WERN has a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HTLD currently has a PEG ratio of 1.85.
Another notable valuation metric for WERN is its P/B ratio of 2.28. 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, HTLD has a P/B of 2.84.
Based on these metrics and many more, WERN holds a Value grade of A, while HTLD has a Value grade of C.
WERN sticks out from HTLD in both our Zacks Rank and Style Scores models, so value investors will likely feel that WERN is the better option right now.
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WERN or HTLD: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Transportation - Truck sector might want to consider either Werner Enterprises (WERN - Free Report) or Heartland Express (HTLD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Werner Enterprises is sporting a Zacks Rank of #2 (Buy), while Heartland Express has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WERN is likely seeing its earnings outlook improve to a greater extent. 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.
WERN currently has a forward P/E ratio of 18.78, while HTLD has a forward P/E of 27.81. We also note that WERN has a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HTLD currently has a PEG ratio of 1.85.
Another notable valuation metric for WERN is its P/B ratio of 2.28. 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, HTLD has a P/B of 2.84.
Based on these metrics and many more, WERN holds a Value grade of A, while HTLD has a Value grade of C.
WERN sticks out from HTLD in both our Zacks Rank and Style Scores models, so value investors will likely feel that WERN is the better option right now.