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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 companies is the best option for those looking for undervalued stocks? Let's 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.
Teck Resources Ltd and Wheaton Precious Metals Corp. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TECK is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
TECK currently has a forward P/E ratio of 5.89, while WPM has a forward P/E of 34.82. We also note that TECK has a PEG ratio of 0.15. 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. WPM currently has a PEG ratio of 6.96.
Another notable valuation metric for TECK is its P/B ratio of 1.17. 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, WPM has a P/B of 3.53.
These metrics, and several others, help TECK earn a Value grade of A, while WPM has been given a Value grade of D.
TECK stands above WPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TECK is the superior value 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 companies is the best option for those looking for undervalued stocks? Let's 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.
Teck Resources Ltd and Wheaton Precious Metals Corp. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TECK is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
TECK currently has a forward P/E ratio of 5.89, while WPM has a forward P/E of 34.82. We also note that TECK has a PEG ratio of 0.15. 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. WPM currently has a PEG ratio of 6.96.
Another notable valuation metric for TECK is its P/B ratio of 1.17. 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, WPM has a P/B of 3.53.
These metrics, and several others, help TECK earn a Value grade of A, while WPM has been given a Value grade of D.
TECK stands above WPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TECK is the superior value option right now.