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GPC vs. CARG: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Automotive - Replacement Parts stocks have likely encountered both Genuine Parts (GPC - Free Report) and CarGurus (CARG - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GPC currently has a forward P/E ratio of 20.33, while CARG has a forward P/E of 26.70. We also note that GPC has a PEG ratio of 1.70. 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. CARG currently has a PEG ratio of 4.45.
Another notable valuation metric for GPC is its P/B ratio of 6.08. 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, CARG has a P/B of 7.81.
Based on these metrics and many more, GPC holds a Value grade of B, while CARG has a Value grade of C.
GPC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GPC is likely the superior value option right now.
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GPC vs. CARG: Which Stock Should Value Investors Buy Now?
Investors with an interest in Automotive - Replacement Parts stocks have likely encountered both Genuine Parts (GPC - Free Report) and CarGurus (CARG - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GPC currently has a forward P/E ratio of 20.33, while CARG has a forward P/E of 26.70. We also note that GPC has a PEG ratio of 1.70. 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. CARG currently has a PEG ratio of 4.45.
Another notable valuation metric for GPC is its P/B ratio of 6.08. 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, CARG has a P/B of 7.81.
Based on these metrics and many more, GPC holds a Value grade of B, while CARG has a Value grade of C.
GPC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GPC is likely the superior value option right now.