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TGLS or HD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Building Products - Retail sector have probably already heard of Tecnoglass (TGLS - Free Report) and Home Depot (HD - 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.
Right now, both Tecnoglass and Home Depot 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 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.
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.
TGLS currently has a forward P/E ratio of 16.95, while HD has a forward P/E of 22.83. We also note that TGLS has a PEG ratio of 0.85. 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. HD currently has a PEG ratio of 2.
Another notable valuation metric for TGLS is its P/B ratio of 4.61. 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, HD has a P/B of 193.02.
These are just a few of the metrics contributing to TGLS's Value grade of B and HD's Value grade of C.
Both TGLS and HD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TGLS is the superior value option right now.
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TGLS or HD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Building Products - Retail sector have probably already heard of Tecnoglass (TGLS - Free Report) and Home Depot (HD - 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.
Right now, both Tecnoglass and Home Depot 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 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.
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.
TGLS currently has a forward P/E ratio of 16.95, while HD has a forward P/E of 22.83. We also note that TGLS has a PEG ratio of 0.85. 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. HD currently has a PEG ratio of 2.
Another notable valuation metric for TGLS is its P/B ratio of 4.61. 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, HD has a P/B of 193.02.
These are just a few of the metrics contributing to TGLS's Value grade of B and HD's Value grade of C.
Both TGLS and HD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TGLS is the superior value option right now.