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VLVLY vs. RACE: Which Stock Is the Better Value Option?
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Investors interested in Automotive - Original Equipment stocks are likely familiar with 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.
Currently, AB Volvo has a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #3 (Hold). 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VLVLY currently has a forward P/E ratio of 9.02, while RACE has a forward P/E of 38.55. We also note that VLVLY has a PEG ratio of 0.59. 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. RACE currently has a PEG ratio of 3.36.
Another notable valuation metric for VLVLY is its P/B ratio of 1.83. 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 14.59.
Based on these metrics and many more, VLVLY holds a Value grade of A, while RACE has a Value grade of C.
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 Is the Better Value Option?
Investors interested in Automotive - Original Equipment stocks are likely familiar with 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.
Currently, AB Volvo has a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #3 (Hold). 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VLVLY currently has a forward P/E ratio of 9.02, while RACE has a forward P/E of 38.55. We also note that VLVLY has a PEG ratio of 0.59. 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. RACE currently has a PEG ratio of 3.36.
Another notable valuation metric for VLVLY is its P/B ratio of 1.83. 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 14.59.
Based on these metrics and many more, VLVLY holds a Value grade of A, while RACE has a Value grade of C.
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.