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ENS vs. ETN: Which Stock Should Value Investors Buy Now?
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Investors interested in Manufacturing - Electronics stocks are likely familiar with EnerSys (ENS - Free Report) and Eaton (ETN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, EnerSys is sporting a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ENS is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
ENS currently has a forward P/E ratio of 15.87, while ETN has a forward P/E of 20.56. We also note that ENS has a PEG ratio of 1.44. 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. ETN currently has a PEG ratio of 1.87.
Another notable valuation metric for ENS is its P/B ratio of 2.18. 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, ETN has a P/B of 3.84.
These are just a few of the metrics contributing to ENS's Value grade of B and ETN's Value grade of C.
ENS stands above ETN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ENS is the superior value option right now.
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ENS vs. ETN: Which Stock Should Value Investors Buy Now?
Investors interested in Manufacturing - Electronics stocks are likely familiar with EnerSys (ENS - Free Report) and Eaton (ETN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, EnerSys is sporting a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ENS is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
ENS currently has a forward P/E ratio of 15.87, while ETN has a forward P/E of 20.56. We also note that ENS has a PEG ratio of 1.44. 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. ETN currently has a PEG ratio of 1.87.
Another notable valuation metric for ENS is its P/B ratio of 2.18. 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, ETN has a P/B of 3.84.
These are just a few of the metrics contributing to ENS's Value grade of B and ETN's Value grade of C.
ENS stands above ETN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ENS is the superior value option right now.