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UEIC vs. KLAC: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Universal Electronics (UEIC - Free Report) and KLA (KLAC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Universal Electronics and KLA are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UEIC has an improving earnings 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 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.
UEIC currently has a forward P/E ratio of 13.11, while KLAC has a forward P/E of 25.60. We also note that UEIC has a PEG ratio of 0.87. 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. KLAC currently has a PEG ratio of 1.82.
Another notable valuation metric for UEIC is its P/B ratio of 2.42. 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, KLAC has a P/B of 17.97.
These metrics, and several others, help UEIC earn a Value grade of B, while KLAC has been given a Value grade of C.
UEIC stands above KLAC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UEIC is the superior value option right now.
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UEIC vs. KLAC: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Universal Electronics (UEIC - Free Report) and KLA (KLAC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Universal Electronics and KLA are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UEIC has an improving earnings 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 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.
UEIC currently has a forward P/E ratio of 13.11, while KLAC has a forward P/E of 25.60. We also note that UEIC has a PEG ratio of 0.87. 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. KLAC currently has a PEG ratio of 1.82.
Another notable valuation metric for UEIC is its P/B ratio of 2.42. 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, KLAC has a P/B of 17.97.
These metrics, and several others, help UEIC earn a Value grade of B, while KLAC has been given a Value grade of C.
UEIC stands above KLAC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UEIC is the superior value option right now.