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.
HLN vs. SYK: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in stocks from the Medical - Products sector have probably already heard of Haleon PLC Sponsored ADR (HLN - Free Report) and Stryker (SYK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Haleon PLC Sponsored ADR has a Zacks Rank of #2 (Buy), while Stryker has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HLN likely has seen a stronger improvement to its earnings outlook than SYK has recently. But this is only part of the picture for value investors.
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.
HLN currently has a forward P/E ratio of 18.15, while SYK has a forward P/E of 29.32. We also note that HLN has a PEG ratio of 2.58. 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. SYK currently has a PEG ratio of 3.12.
Another notable valuation metric for HLN is its P/B ratio of 1.87. 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, SYK has a P/B of 6.69.
Based on these metrics and many more, HLN holds a Value grade of B, while SYK has a Value grade of C.
HLN stands above SYK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HLN is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HLN vs. SYK: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Medical - Products sector have probably already heard of Haleon PLC Sponsored ADR (HLN - Free Report) and Stryker (SYK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Haleon PLC Sponsored ADR has a Zacks Rank of #2 (Buy), while Stryker has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HLN likely has seen a stronger improvement to its earnings outlook than SYK has recently. But this is only part of the picture for value investors.
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.
HLN currently has a forward P/E ratio of 18.15, while SYK has a forward P/E of 29.32. We also note that HLN has a PEG ratio of 2.58. 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. SYK currently has a PEG ratio of 3.12.
Another notable valuation metric for HLN is its P/B ratio of 1.87. 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, SYK has a P/B of 6.69.
Based on these metrics and many more, HLN holds a Value grade of B, while SYK has a Value grade of C.
HLN stands above SYK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HLN is the superior value option right now.