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HOLX or EW: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Instruments stocks have likely encountered both Hologic (HOLX - Free Report) and Edwards Lifesciences (EW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hologic is sporting a Zacks Rank of #2 (Buy), while Edwards Lifesciences has a Zacks Rank of #3 (Hold). This means that HOLX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
HOLX currently has a forward P/E ratio of 22.13, while EW has a forward P/E of 33.30. We also note that HOLX has a PEG ratio of 1.46. 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. EW currently has a PEG ratio of 4.88.
Another notable valuation metric for HOLX is its P/B ratio of 4.01. 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, EW has a P/B of 8.93.
Based on these metrics and many more, HOLX holds a Value grade of B, while EW has a Value grade of C.
HOLX has seen stronger estimate revision activity and sports more attractive valuation metrics than EW, so it seems like value investors will conclude that HOLX is the superior option right now.
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HOLX or EW: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Instruments stocks have likely encountered both Hologic (HOLX - Free Report) and Edwards Lifesciences (EW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hologic is sporting a Zacks Rank of #2 (Buy), while Edwards Lifesciences has a Zacks Rank of #3 (Hold). This means that HOLX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
HOLX currently has a forward P/E ratio of 22.13, while EW has a forward P/E of 33.30. We also note that HOLX has a PEG ratio of 1.46. 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. EW currently has a PEG ratio of 4.88.
Another notable valuation metric for HOLX is its P/B ratio of 4.01. 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, EW has a P/B of 8.93.
Based on these metrics and many more, HOLX holds a Value grade of B, while EW has a Value grade of C.
HOLX has seen stronger estimate revision activity and sports more attractive valuation metrics than EW, so it seems like value investors will conclude that HOLX is the superior option right now.