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NOK vs. SWIR: Which Stock Should Value Investors Buy Now?
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Investors interested in Wireless Equipment stocks are likely familiar with Nokia (NOK - Free Report) and Sierra Wireless . 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Nokia has a Zacks Rank of #2 (Buy), while Sierra Wireless has a Zacks Rank of #3 (Hold) right now. This means that NOK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
NOK currently has a forward P/E ratio of 12.17, while SWIR has a forward P/E of 56.17. We also note that NOK has a PEG ratio of 1.17. 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. SWIR currently has a PEG ratio of 3.74.
Another notable valuation metric for NOK is its P/B ratio of 1.39. 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, SWIR has a P/B of 2.18.
These are just a few of the metrics contributing to NOK's Value grade of A and SWIR's Value grade of D.
NOK has seen stronger estimate revision activity and sports more attractive valuation metrics than SWIR, so it seems like value investors will conclude that NOK is the superior option right now.
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NOK vs. SWIR: Which Stock Should Value Investors Buy Now?
Investors interested in Wireless Equipment stocks are likely familiar with Nokia (NOK - Free Report) and Sierra Wireless . 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Nokia has a Zacks Rank of #2 (Buy), while Sierra Wireless has a Zacks Rank of #3 (Hold) right now. This means that NOK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
NOK currently has a forward P/E ratio of 12.17, while SWIR has a forward P/E of 56.17. We also note that NOK has a PEG ratio of 1.17. 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. SWIR currently has a PEG ratio of 3.74.
Another notable valuation metric for NOK is its P/B ratio of 1.39. 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, SWIR has a P/B of 2.18.
These are just a few of the metrics contributing to NOK's Value grade of A and SWIR's Value grade of D.
NOK has seen stronger estimate revision activity and sports more attractive valuation metrics than SWIR, so it seems like value investors will conclude that NOK is the superior option right now.