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GPC or CARG: Which Is the Better Value Stock Right Now?
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Investors interested in Automotive - Replacement Parts stocks are likely familiar with Genuine Parts (GPC - Free Report) and CarGurus (CARG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Genuine Parts has a Zacks Rank of #2 (Buy), while CarGurus has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPC has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GPC currently has a forward P/E ratio of 17.34, while CARG has a forward P/E of 354.08. We also note that GPC has a PEG ratio of 2.61. 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. CARG currently has a PEG ratio of 70.82.
Another notable valuation metric for GPC is its P/B ratio of 4.04. 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, CARG has a P/B of 29.74.
These metrics, and several others, help GPC earn a Value grade of A, while CARG has been given a Value grade of F.
GPC 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 GPC is likely the superior value option right now.
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GPC or CARG: Which Is the Better Value Stock Right Now?
Investors interested in Automotive - Replacement Parts stocks are likely familiar with Genuine Parts (GPC - Free Report) and CarGurus (CARG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Genuine Parts has a Zacks Rank of #2 (Buy), while CarGurus has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPC has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GPC currently has a forward P/E ratio of 17.34, while CARG has a forward P/E of 354.08. We also note that GPC has a PEG ratio of 2.61. 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. CARG currently has a PEG ratio of 70.82.
Another notable valuation metric for GPC is its P/B ratio of 4.04. 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, CARG has a P/B of 29.74.
These metrics, and several others, help GPC earn a Value grade of A, while CARG has been given a Value grade of F.
GPC 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 GPC is likely the superior value option right now.