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LH or ALGN: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either LabCorp (LH - Free Report) or Align Technology (ALGN - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both LabCorp and Align Technology are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
LH currently has a forward P/E ratio of 14.25, while ALGN has a forward P/E of 59.67. We also note that LH has a PEG ratio of 1.63. 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. ALGN currently has a PEG ratio of 2.55.
Another notable valuation metric for LH is its P/B ratio of 2.22. 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, ALGN has a P/B of 20.68.
These are just a few of the metrics contributing to LH's Value grade of A and ALGN's Value grade of D.
Both LH and ALGN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LH is the superior value option right now.
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LH or ALGN: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either LabCorp (LH - Free Report) or Align Technology (ALGN - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both LabCorp and Align Technology are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
LH currently has a forward P/E ratio of 14.25, while ALGN has a forward P/E of 59.67. We also note that LH has a PEG ratio of 1.63. 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. ALGN currently has a PEG ratio of 2.55.
Another notable valuation metric for LH is its P/B ratio of 2.22. 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, ALGN has a P/B of 20.68.
These are just a few of the metrics contributing to LH's Value grade of A and ALGN's Value grade of D.
Both LH and ALGN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LH is the superior value option right now.