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GPC or CARG: Which Is the Better Value Stock Right 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Genuine Parts has a Zacks Rank of #2 (Buy), while CarGurus has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GPC currently has a forward P/E ratio of 17.32, while CARG has a forward P/E of 22.56. We also note that GPC has a PEG ratio of 1.58. 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. CARG currently has a PEG ratio of 1.74.
Another notable valuation metric for GPC is its P/B ratio of 5.31. 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, CARG has a P/B of 8.44.
These metrics, and several others, help GPC earn a Value grade of A, while CARG has been given 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 or CARG: Which Is the Better Value Stock Right 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Genuine Parts has a Zacks Rank of #2 (Buy), while CarGurus has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GPC currently has a forward P/E ratio of 17.32, while CARG has a forward P/E of 22.56. We also note that GPC has a PEG ratio of 1.58. 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. CARG currently has a PEG ratio of 1.74.
Another notable valuation metric for GPC is its P/B ratio of 5.31. 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, CARG has a P/B of 8.44.
These metrics, and several others, help GPC earn a Value grade of A, while CARG has been given 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.