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HIW vs. EGP: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Highwoods Properties (HIW - Free Report) or EastGroup Properties (EGP - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Highwoods Properties and EastGroup Properties have a Zacks Rank of # 2 (Buy) right now. 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 just one piece of the puzzle for value investors.
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.
HIW currently has a forward P/E ratio of 12.41, while EGP has a forward P/E of 33.22. We also note that HIW has a PEG ratio of 3.24. 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. EGP currently has a PEG ratio of 3.95.
Another notable valuation metric for HIW is its P/B ratio of 2.03. 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, EGP has a P/B of 5.67.
Based on these metrics and many more, HIW holds a Value grade of B, while EGP has a Value grade of D.
Both HIW and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HIW is the superior value option right now.
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HIW vs. EGP: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Highwoods Properties (HIW - Free Report) or EastGroup Properties (EGP - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Highwoods Properties and EastGroup Properties have a Zacks Rank of # 2 (Buy) right now. 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 just one piece of the puzzle for value investors.
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.
HIW currently has a forward P/E ratio of 12.41, while EGP has a forward P/E of 33.22. We also note that HIW has a PEG ratio of 3.24. 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. EGP currently has a PEG ratio of 3.95.
Another notable valuation metric for HIW is its P/B ratio of 2.03. 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, EGP has a P/B of 5.67.
Based on these metrics and many more, HIW holds a Value grade of B, while EGP has a Value grade of D.
Both HIW and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HIW is the superior value option right now.