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PCMI vs. SPB: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both PCM and Spectrum Brands (SPB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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.
Currently, PCM has a Zacks Rank of #2 (Buy), while Spectrum Brands 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 PCMI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PCMI currently has a forward P/E ratio of 10.46, while SPB has a forward P/E of 22.43. We also note that PCMI has a PEG ratio of 0.52. 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. SPB currently has a PEG ratio of 2.61.
Another notable valuation metric for PCMI is its P/B ratio of 2.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SPB has a P/B of 2.38.
These are just a few of the metrics contributing to PCMI's Value grade of A and SPB's Value grade of D.
PCMI stands above SPB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PCMI is the superior value option right now.
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PCMI vs. SPB: Which Stock Should Value Investors Buy Now?
Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both PCM and Spectrum Brands (SPB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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.
Currently, PCM has a Zacks Rank of #2 (Buy), while Spectrum Brands 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 PCMI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PCMI currently has a forward P/E ratio of 10.46, while SPB has a forward P/E of 22.43. We also note that PCMI has a PEG ratio of 0.52. 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. SPB currently has a PEG ratio of 2.61.
Another notable valuation metric for PCMI is its P/B ratio of 2.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SPB has a P/B of 2.38.
These are just a few of the metrics contributing to PCMI's Value grade of A and SPB's Value grade of D.
PCMI stands above SPB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PCMI is the superior value option right now.