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FN or LFUS: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Fabrinet (FN - Free Report) or Littelfuse (LFUS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Fabrinet has a Zacks Rank of #2 (Buy), while Littelfuse has a Zacks Rank of #4 (Sell). This means that FN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
FN currently has a forward P/E ratio of 14.31, while LFUS has a forward P/E of 19.33. We also note that FN has a PEG ratio of 1.10. 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. LFUS currently has a PEG ratio of 1.61.
Another notable valuation metric for FN is its P/B ratio of 2.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, LFUS has a P/B of 3.11.
Based on these metrics and many more, FN holds a Value grade of B, while LFUS has a Value grade of D.
FN sticks out from LFUS in both our Zacks Rank and Style Scores models, so value investors will likely feel that FN is the better option right now.
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FN or LFUS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Fabrinet (FN - Free Report) or Littelfuse (LFUS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Fabrinet has a Zacks Rank of #2 (Buy), while Littelfuse has a Zacks Rank of #4 (Sell). This means that FN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
FN currently has a forward P/E ratio of 14.31, while LFUS has a forward P/E of 19.33. We also note that FN has a PEG ratio of 1.10. 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. LFUS currently has a PEG ratio of 1.61.
Another notable valuation metric for FN is its P/B ratio of 2.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, LFUS has a P/B of 3.11.
Based on these metrics and many more, FN holds a Value grade of B, while LFUS has a Value grade of D.
FN sticks out from LFUS in both our Zacks Rank and Style Scores models, so value investors will likely feel that FN is the better option right now.