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ENS vs. EMR: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Manufacturing - Electronics stocks have likely encountered both EnerSys (ENS - Free Report) and Emerson Electric (EMR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both EnerSys and Emerson Electric are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
ENS currently has a forward P/E ratio of 19.77, while EMR has a forward P/E of 23.73. We also note that ENS has a PEG ratio of 1.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EMR currently has a PEG ratio of 2.46.
Another notable valuation metric for ENS is its P/B ratio of 2.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EMR has a P/B of 5.85.
These are just a few of the metrics contributing to ENS's Value grade of B and EMR's Value grade of C.
Both ENS and EMR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ENS is the superior value option right now.
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ENS vs. EMR: Which Stock Should Value Investors Buy Now?
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both EnerSys (ENS - Free Report) and Emerson Electric (EMR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both EnerSys and Emerson Electric are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
ENS currently has a forward P/E ratio of 19.77, while EMR has a forward P/E of 23.73. We also note that ENS has a PEG ratio of 1.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EMR currently has a PEG ratio of 2.46.
Another notable valuation metric for ENS is its P/B ratio of 2.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EMR has a P/B of 5.85.
These are just a few of the metrics contributing to ENS's Value grade of B and EMR's Value grade of C.
Both ENS and EMR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ENS is the superior value option right now.