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TECK or WPM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of Teck Resources Ltd (TECK - Free Report) and Wheaton Precious Metals Corp. (WPM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Teck Resources Ltd is sporting a Zacks Rank of #2 (Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that TECK likely has seen a stronger improvement to its earnings outlook than WPM has recently. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TECK currently has a forward P/E ratio of 8.21, while WPM has a forward P/E of 28.73. We also note that TECK has a PEG ratio of 0.25. 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. WPM currently has a PEG ratio of 5.74.
Another notable valuation metric for TECK is its P/B ratio of 0.83. 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, WPM has a P/B of 3.
Based on these metrics and many more, TECK holds a Value grade of A, while WPM has a Value grade of D.
TECK sticks out from WPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that TECK is the better option right now.
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TECK or WPM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of Teck Resources Ltd (TECK - Free Report) and Wheaton Precious Metals Corp. (WPM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Teck Resources Ltd is sporting a Zacks Rank of #2 (Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that TECK likely has seen a stronger improvement to its earnings outlook than WPM has recently. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TECK currently has a forward P/E ratio of 8.21, while WPM has a forward P/E of 28.73. We also note that TECK has a PEG ratio of 0.25. 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. WPM currently has a PEG ratio of 5.74.
Another notable valuation metric for TECK is its P/B ratio of 0.83. 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, WPM has a P/B of 3.
Based on these metrics and many more, TECK holds a Value grade of A, while WPM has a Value grade of D.
TECK sticks out from WPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that TECK is the better option right now.