We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FLEX vs. GRMN: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Flex (FLEX - Free Report) and Garmin (GRMN - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Flex has a Zacks Rank of #1 (Strong Buy), while Garmin has a Zacks Rank of #3 (Hold) right now. This means that FLEX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 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.
FLEX currently has a forward P/E ratio of 7.31, while GRMN has a forward P/E of 17.06. We also note that FLEX has a PEG ratio of 0.49. 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. GRMN currently has a PEG ratio of 3.05.
Another notable valuation metric for FLEX is its P/B ratio of 2.03. 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, GRMN has a P/B of 3.11.
These are just a few of the metrics contributing to FLEX's Value grade of A and GRMN's Value grade of C.
FLEX stands above GRMN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FLEX is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FLEX vs. GRMN: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Flex (FLEX - Free Report) and Garmin (GRMN - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Flex has a Zacks Rank of #1 (Strong Buy), while Garmin has a Zacks Rank of #3 (Hold) right now. This means that FLEX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 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.
FLEX currently has a forward P/E ratio of 7.31, while GRMN has a forward P/E of 17.06. We also note that FLEX has a PEG ratio of 0.49. 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. GRMN currently has a PEG ratio of 3.05.
Another notable valuation metric for FLEX is its P/B ratio of 2.03. 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, GRMN has a P/B of 3.11.
These are just a few of the metrics contributing to FLEX's Value grade of A and GRMN's Value grade of C.
FLEX stands above GRMN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FLEX is the superior value option right now.