Investors with an interest in Chemical - Specialty stocks have likely encountered both Axalta Coating Systems (AXTA - Free Report) and CSW Industrials (CSWI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, Axalta Coating Systems has a Zacks Rank of #2 (Buy), while CSW Industrials has a Zacks Rank of #3 (Hold). This means that AXTA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
AXTA currently has a forward P/E ratio of 16.63, while CSWI has a forward P/E of 29.40. We also note that AXTA has a PEG ratio of 1.02. 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. CSWI currently has a PEG ratio of 1.96.
Another notable valuation metric for AXTA is its P/B ratio of 3.90. 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, CSWI has a P/B of 6.30.
These are just a few of the metrics contributing to AXTA's Value grade of B and CSWI's Value grade of D.
AXTA stands above CSWI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXTA is the superior value option right now.
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Investors with an interest in Chemical - Specialty stocks have likely encountered both Axalta Coating Systems (AXTA - Free Report) and CSW Industrials (CSWI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, Axalta Coating Systems has a Zacks Rank of #2 (Buy), while CSW Industrials has a Zacks Rank of #3 (Hold). This means that AXTA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
AXTA currently has a forward P/E ratio of 16.63, while CSWI has a forward P/E of 29.40. We also note that AXTA has a PEG ratio of 1.02. 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. CSWI currently has a PEG ratio of 1.96.
Another notable valuation metric for AXTA is its P/B ratio of 3.90. 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, CSWI has a P/B of 6.30.
These are just a few of the metrics contributing to AXTA's Value grade of B and CSWI's Value grade of D.
AXTA stands above CSWI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXTA is the superior value option right now.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
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