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HLIO vs. NDSN: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Helios Technologies (HLIO - Free Report) and Nordson (NDSN - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Helios Technologies and Nordson are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
HLIO currently has a forward P/E ratio of 14.22, while NDSN has a forward P/E of 22.59. We also note that HLIO has a PEG ratio of 1.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NDSN currently has a PEG ratio of 1.74.
Another notable valuation metric for HLIO is its P/B ratio of 2.87. 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, NDSN has a P/B of 5.53.
These are just a few of the metrics contributing to HLIO's Value grade of B and NDSN's Value grade of C.
Both HLIO and NDSN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HLIO is the superior value option right now.
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HLIO vs. NDSN: Which Stock Should Value Investors Buy Now?
Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Helios Technologies (HLIO - Free Report) and Nordson (NDSN - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Helios Technologies and Nordson are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
HLIO currently has a forward P/E ratio of 14.22, while NDSN has a forward P/E of 22.59. We also note that HLIO has a PEG ratio of 1.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NDSN currently has a PEG ratio of 1.74.
Another notable valuation metric for HLIO is its P/B ratio of 2.87. 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, NDSN has a P/B of 5.53.
These are just a few of the metrics contributing to HLIO's Value grade of B and NDSN's Value grade of C.
Both HLIO and NDSN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HLIO is the superior value option right now.