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VOD or BB: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Wireless Non-US sector might want to consider either Vodafone Group PLC (VOD - Free Report) or BlackBerry (BB - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Vodafone Group PLC and BlackBerry are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that VOD likely has seen a stronger improvement to its earnings outlook than BB has recently. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VOD currently has a forward P/E ratio of 16.24, while BB has a forward P/E of 62.77. We also note that VOD has a PEG ratio of 1.14. 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. BB currently has a PEG ratio of 1.21.
Another notable valuation metric for VOD is its P/B ratio of 0.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BB has a P/B of 2.37.
These are just a few of the metrics contributing to VOD's Value grade of A and BB's Value grade of F.
VOD has seen stronger estimate revision activity and sports more attractive valuation metrics than BB, so it seems like value investors will conclude that VOD is the superior option right now.
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VOD or BB: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Wireless Non-US sector might want to consider either Vodafone Group PLC (VOD - Free Report) or BlackBerry (BB - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Vodafone Group PLC and BlackBerry are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that VOD likely has seen a stronger improvement to its earnings outlook than BB has recently. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VOD currently has a forward P/E ratio of 16.24, while BB has a forward P/E of 62.77. We also note that VOD has a PEG ratio of 1.14. 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. BB currently has a PEG ratio of 1.21.
Another notable valuation metric for VOD is its P/B ratio of 0.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BB has a P/B of 2.37.
These are just a few of the metrics contributing to VOD's Value grade of A and BB's Value grade of F.
VOD has seen stronger estimate revision activity and sports more attractive valuation metrics than BB, so it seems like value investors will conclude that VOD is the superior option right now.