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STRT vs. SHYF: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Strattec Security (STRT - Free Report) and The Shyft Group (SHYF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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.
Strattec Security and The Shyft Group are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that STRT has an improving earnings outlook. 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 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.
STRT currently has a forward P/E ratio of 10.13, while SHYF has a forward P/E of 21.25. We also note that STRT has a PEG ratio of 0.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SHYF currently has a PEG ratio of 1.06.
Another notable valuation metric for STRT is its P/B ratio of 1.08. 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, SHYF has a P/B of 5.01.
Based on these metrics and many more, STRT holds a Value grade of B, while SHYF has a Value grade of C.
STRT has seen stronger estimate revision activity and sports more attractive valuation metrics than SHYF, so it seems like value investors will conclude that STRT is the superior option right now.
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STRT vs. SHYF: Which Stock Should Value Investors Buy Now?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Strattec Security (STRT - Free Report) and The Shyft Group (SHYF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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.
Strattec Security and The Shyft Group are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that STRT has an improving earnings outlook. 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 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.
STRT currently has a forward P/E ratio of 10.13, while SHYF has a forward P/E of 21.25. We also note that STRT has a PEG ratio of 0.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SHYF currently has a PEG ratio of 1.06.
Another notable valuation metric for STRT is its P/B ratio of 1.08. 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, SHYF has a P/B of 5.01.
Based on these metrics and many more, STRT holds a Value grade of B, while SHYF has a Value grade of C.
STRT has seen stronger estimate revision activity and sports more attractive valuation metrics than SHYF, so it seems like value investors will conclude that STRT is the superior option right now.