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GPK or AMCR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Graphic Packaging (GPK - Free Report) or Amcor (AMCR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Graphic Packaging and Amcor are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPK has 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.
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.
GPK currently has a forward P/E ratio of 9.48, while AMCR has a forward P/E of 15.79. We also note that GPK has a PEG ratio of 0.38. 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. AMCR currently has a PEG ratio of 3.99.
Another notable valuation metric for GPK is its P/B ratio of 3.47. 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, AMCR has a P/B of 4.63.
These metrics, and several others, help GPK earn a Value grade of A, while AMCR has been given a Value grade of C.
GPK has seen stronger estimate revision activity and sports more attractive valuation metrics than AMCR, so it seems like value investors will conclude that GPK is the superior option right now.
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GPK or AMCR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Graphic Packaging (GPK - Free Report) or Amcor (AMCR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Graphic Packaging and Amcor are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPK has 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.
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.
GPK currently has a forward P/E ratio of 9.48, while AMCR has a forward P/E of 15.79. We also note that GPK has a PEG ratio of 0.38. 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. AMCR currently has a PEG ratio of 3.99.
Another notable valuation metric for GPK is its P/B ratio of 3.47. 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, AMCR has a P/B of 4.63.
These metrics, and several others, help GPK earn a Value grade of A, while AMCR has been given a Value grade of C.
GPK has seen stronger estimate revision activity and sports more attractive valuation metrics than AMCR, so it seems like value investors will conclude that GPK is the superior option right now.