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ALC vs. ISRG: Which Stock Is the Better Value Option?
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Investors with an interest in Medical - Instruments stocks have likely encountered both Alcon (ALC - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Right now, Alcon is sporting a Zacks Rank of #2 (Buy), while Intuitive Surgical, Inc. 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 ALC is likely seeing its earnings outlook improve to a greater extent. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ALC currently has a forward P/E ratio of 25.33, while ISRG has a forward P/E of 45.16. We also note that ALC has a PEG ratio of 1.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ISRG currently has a PEG ratio of 3.78.
Another notable valuation metric for ALC is its P/B ratio of 1.63. 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, ISRG has a P/B of 7.56.
Based on these metrics and many more, ALC holds a Value grade of B, while ISRG has a Value grade of C.
ALC sticks out from ISRG in both our Zacks Rank and Style Scores models, so value investors will likely feel that ALC is the better option right now.
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ALC vs. ISRG: Which Stock Is the Better Value Option?
Investors with an interest in Medical - Instruments stocks have likely encountered both Alcon (ALC - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Right now, Alcon is sporting a Zacks Rank of #2 (Buy), while Intuitive Surgical, Inc. 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 ALC is likely seeing its earnings outlook improve to a greater extent. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ALC currently has a forward P/E ratio of 25.33, while ISRG has a forward P/E of 45.16. We also note that ALC has a PEG ratio of 1.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ISRG currently has a PEG ratio of 3.78.
Another notable valuation metric for ALC is its P/B ratio of 1.63. 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, ISRG has a P/B of 7.56.
Based on these metrics and many more, ALC holds a Value grade of B, while ISRG has a Value grade of C.
ALC sticks out from ISRG in both our Zacks Rank and Style Scores models, so value investors will likely feel that ALC is the better option right now.