We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EVRG or WMB: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Oil and Gas - Production and Pipelines sector have probably already heard of Evergy Inc (EVRG - Free Report) and Williams Companies, Inc. (The) (WMB - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Evergy Inc and Williams Companies, Inc. (The) are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EVRG has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
EVRG currently has a forward P/E ratio of 16.80, while WMB has a forward P/E of 17.82. We also note that EVRG has a PEG ratio of 3.17. 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. WMB currently has a PEG ratio of 5.09.
Another notable valuation metric for EVRG is its P/B ratio of 1.46. 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, WMB has a P/B of 2.82.
These metrics, and several others, help EVRG earn a Value grade of B, while WMB has been given a Value grade of C.
EVRG sticks out from WMB in both our Zacks Rank and Style Scores models, so value investors will likely feel that EVRG is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
EVRG or WMB: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Oil and Gas - Production and Pipelines sector have probably already heard of Evergy Inc (EVRG - Free Report) and Williams Companies, Inc. (The) (WMB - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Evergy Inc and Williams Companies, Inc. (The) are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EVRG has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
EVRG currently has a forward P/E ratio of 16.80, while WMB has a forward P/E of 17.82. We also note that EVRG has a PEG ratio of 3.17. 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. WMB currently has a PEG ratio of 5.09.
Another notable valuation metric for EVRG is its P/B ratio of 1.46. 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, WMB has a P/B of 2.82.
These metrics, and several others, help EVRG earn a Value grade of B, while WMB has been given a Value grade of C.
EVRG sticks out from WMB in both our Zacks Rank and Style Scores models, so value investors will likely feel that EVRG is the better option right now.