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GPC vs. CARG: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Automotive - Replacement Parts sector might want to consider either Genuine Parts (GPC - Free Report) or CarGurus (CARG - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Genuine Parts and CarGurus are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that GPC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
GPC currently has a forward P/E ratio of 20.27, while CARG has a forward P/E of 24.79. We also note that GPC has a PEG ratio of 2.21. 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. CARG currently has a PEG ratio of 4.13.
Another notable valuation metric for GPC is its P/B ratio of 5.72. 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, CARG has a P/B of 7.22.
These metrics, and several others, help GPC earn a Value grade of A, while CARG has been given a Value grade of D.
GPC has seen stronger estimate revision activity and sports more attractive valuation metrics than CARG, so it seems like value investors will conclude that GPC is the superior option right now.
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GPC vs. CARG: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Automotive - Replacement Parts sector might want to consider either Genuine Parts (GPC - Free Report) or CarGurus (CARG - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Genuine Parts and CarGurus are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that GPC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
GPC currently has a forward P/E ratio of 20.27, while CARG has a forward P/E of 24.79. We also note that GPC has a PEG ratio of 2.21. 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. CARG currently has a PEG ratio of 4.13.
Another notable valuation metric for GPC is its P/B ratio of 5.72. 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, CARG has a P/B of 7.22.
These metrics, and several others, help GPC earn a Value grade of A, while CARG has been given a Value grade of D.
GPC has seen stronger estimate revision activity and sports more attractive valuation metrics than CARG, so it seems like value investors will conclude that GPC is the superior option right now.