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STRL or HWM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Sterling Infrastructure (STRL - Free Report) or Howmet (HWM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Sterling Infrastructure and Howmet are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
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.
STRL currently has a forward P/E ratio of 15.85, while HWM has a forward P/E of 28.80. We also note that STRL has a PEG ratio of 0.88. 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. HWM currently has a PEG ratio of 1.73.
Another notable valuation metric for STRL is its P/B ratio of 3.45. 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, HWM has a P/B of 5.44.
Based on these metrics and many more, STRL holds a Value grade of A, while HWM has a Value grade of D.
Both STRL and HWM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that STRL is the superior value option right now.
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STRL or HWM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Sterling Infrastructure (STRL - Free Report) or Howmet (HWM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Sterling Infrastructure and Howmet are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
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.
STRL currently has a forward P/E ratio of 15.85, while HWM has a forward P/E of 28.80. We also note that STRL has a PEG ratio of 0.88. 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. HWM currently has a PEG ratio of 1.73.
Another notable valuation metric for STRL is its P/B ratio of 3.45. 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, HWM has a P/B of 5.44.
Based on these metrics and many more, STRL holds a Value grade of A, while HWM has a Value grade of D.
Both STRL and HWM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that STRL is the superior value option right now.