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RKT or TT: Which Is the Better Value Stock Right Now?
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Investors with an interest in Technology Services stocks have likely encountered both Rocket Companies (RKT - Free Report) and Trane Technologies (TT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Rocket Companies has a Zacks Rank of #2 (Buy), while Trane Technologies has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RKT has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
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.
RKT currently has a forward P/E ratio of 7.01, while TT has a forward P/E of 27.99. We also note that RKT has a PEG ratio of 0.70. 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. TT currently has a PEG ratio of 1.32.
Another notable valuation metric for RKT is its P/B ratio of 3.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TT has a P/B of 6.24.
These are just a few of the metrics contributing to RKT's Value grade of A and TT's Value grade of C.
RKT stands above TT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that RKT is the superior value option right now.
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RKT or TT: Which Is the Better Value Stock Right Now?
Investors with an interest in Technology Services stocks have likely encountered both Rocket Companies (RKT - Free Report) and Trane Technologies (TT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Rocket Companies has a Zacks Rank of #2 (Buy), while Trane Technologies has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RKT has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
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.
RKT currently has a forward P/E ratio of 7.01, while TT has a forward P/E of 27.99. We also note that RKT has a PEG ratio of 0.70. 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. TT currently has a PEG ratio of 1.32.
Another notable valuation metric for RKT is its P/B ratio of 3.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TT has a P/B of 6.24.
These are just a few of the metrics contributing to RKT's Value grade of A and TT's Value grade of C.
RKT stands above TT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that RKT is the superior value option right now.