Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Schlumberger (SLB - Free Report) and Core Laboratories (CLB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Schlumberger is sporting a Zacks Rank of #2 (Buy), while Core Laboratories has a Zacks Rank of #3 (Hold). This means that SLB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
SLB currently has a forward P/E ratio of 18.53, while CLB has a forward P/E of 31.67. We also note that SLB has a PEG ratio of 0.48. 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. CLB currently has a PEG ratio of 0.78.
Another notable valuation metric for SLB is its P/B ratio of 3.18. 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, CLB has a P/B of 4.54.
These metrics, and several others, help SLB earn a Value grade of B, while CLB has been given a Value grade of C.
SLB stands above CLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SLB is the superior value option right now.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Schlumberger (SLB - Free Report) and Core Laboratories (CLB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Schlumberger is sporting a Zacks Rank of #2 (Buy), while Core Laboratories has a Zacks Rank of #3 (Hold). This means that SLB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
SLB currently has a forward P/E ratio of 18.53, while CLB has a forward P/E of 31.67. We also note that SLB has a PEG ratio of 0.48. 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. CLB currently has a PEG ratio of 0.78.
Another notable valuation metric for SLB is its P/B ratio of 3.18. 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, CLB has a P/B of 4.54.
These metrics, and several others, help SLB earn a Value grade of B, while CLB has been given a Value grade of C.
SLB stands above CLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SLB is the superior value option right now.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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