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PNM vs. WEC: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Utility - Electric Power sector have probably already heard of PNM Resources (PNM - Free Report) and WEC Energy Group (WEC - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both PNM Resources and WEC Energy Group are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
PNM currently has a forward P/E ratio of 17.87, while WEC has a forward P/E of 21.99. We also note that PNM has a PEG ratio of 3.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WEC currently has a PEG ratio of 3.65.
Another notable valuation metric for PNM is its P/B ratio of 1.78. 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, WEC has a P/B of 2.69.
These are just a few of the metrics contributing to PNM's Value grade of B and WEC's Value grade of D.
Both PNM and WEC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PNM is the superior value option right now.
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PNM vs. WEC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of PNM Resources (PNM - Free Report) and WEC Energy Group (WEC - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both PNM Resources and WEC Energy Group are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
PNM currently has a forward P/E ratio of 17.87, while WEC has a forward P/E of 21.99. We also note that PNM has a PEG ratio of 3.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WEC currently has a PEG ratio of 3.65.
Another notable valuation metric for PNM is its P/B ratio of 1.78. 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, WEC has a P/B of 2.69.
These are just a few of the metrics contributing to PNM's Value grade of B and WEC's Value grade of D.
Both PNM and WEC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PNM is the superior value option right now.