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SSUMY or ITT: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Diversified Operations sector have probably already heard of Sumitomo Corp. (SSUMY - Free Report) and ITT (ITT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Sumitomo Corp. has a Zacks Rank of #1 (Strong Buy), while ITT has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SSUMY likely has seen a stronger improvement to its earnings outlook than ITT 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SSUMY currently has a forward P/E ratio of 7.89, while ITT has a forward P/E of 18.17. We also note that SSUMY has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ITT currently has a PEG ratio of 1.43.
Another notable valuation metric for SSUMY is its P/B ratio of 0.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ITT has a P/B of 3.17.
Based on these metrics and many more, SSUMY holds a Value grade of A, while ITT has a Value grade of C.
SSUMY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SSUMY is likely the superior value option right now.
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SSUMY or ITT: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Diversified Operations sector have probably already heard of Sumitomo Corp. (SSUMY - Free Report) and ITT (ITT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Sumitomo Corp. has a Zacks Rank of #1 (Strong Buy), while ITT has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SSUMY likely has seen a stronger improvement to its earnings outlook than ITT 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SSUMY currently has a forward P/E ratio of 7.89, while ITT has a forward P/E of 18.17. We also note that SSUMY has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ITT currently has a PEG ratio of 1.43.
Another notable valuation metric for SSUMY is its P/B ratio of 0.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ITT has a P/B of 3.17.
Based on these metrics and many more, SSUMY holds a Value grade of A, while ITT has a Value grade of C.
SSUMY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SSUMY is likely the superior value option right now.