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VLVLY vs. RACE: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both AB Volvo (VLVLY - Free Report) and Ferrari (RACE - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, AB Volvo is sporting a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that VLVLY likely has seen a stronger improvement to its earnings outlook than RACE has recently. 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 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.
VLVLY currently has a forward P/E ratio of 9.26, while RACE has a forward P/E of 36. We also note that VLVLY has a PEG ratio of 0.98. 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. RACE currently has a PEG ratio of 3.19.
Another notable valuation metric for VLVLY is its P/B ratio of 1.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RACE has a P/B of 12.40.
These are just a few of the metrics contributing to VLVLY's Value grade of A and RACE's Value grade of F.
VLVLY stands above RACE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VLVLY is the superior value option right now.
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VLVLY vs. RACE: Which Stock Should Value Investors Buy Now?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both AB Volvo (VLVLY - Free Report) and Ferrari (RACE - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, AB Volvo is sporting a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that VLVLY likely has seen a stronger improvement to its earnings outlook than RACE has recently. 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 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.
VLVLY currently has a forward P/E ratio of 9.26, while RACE has a forward P/E of 36. We also note that VLVLY has a PEG ratio of 0.98. 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. RACE currently has a PEG ratio of 3.19.
Another notable valuation metric for VLVLY is its P/B ratio of 1.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RACE has a P/B of 12.40.
These are just a few of the metrics contributing to VLVLY's Value grade of A and RACE's Value grade of F.
VLVLY stands above RACE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VLVLY is the superior value option right now.