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CEG vs. AMRC: Which Stock Is the Better Value Option?
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Investors interested in Alternative Energy - Other stocks are likely familiar with Constellation Energy Corporation (CEG - Free Report) and Ameresco (AMRC - 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.
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.
Constellation Energy Corporation has a Zacks Rank of #2 (Buy), while Ameresco has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CEG likely has seen a stronger improvement to its earnings outlook than AMRC has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CEG currently has a forward P/E ratio of 22.12, while AMRC has a forward P/E of 27.35. We also note that CEG has a PEG ratio of 0.72. 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. AMRC currently has a PEG ratio of 1.14.
Another notable valuation metric for CEG is its P/B ratio of 2.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMRC has a P/B of 2.85.
These are just a few of the metrics contributing to CEG's Value grade of B and AMRC's Value grade of C.
CEG has seen stronger estimate revision activity and sports more attractive valuation metrics than AMRC, so it seems like value investors will conclude that CEG is the superior option right now.
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CEG vs. AMRC: Which Stock Is the Better Value Option?
Investors interested in Alternative Energy - Other stocks are likely familiar with Constellation Energy Corporation (CEG - Free Report) and Ameresco (AMRC - 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.
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.
Constellation Energy Corporation has a Zacks Rank of #2 (Buy), while Ameresco has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CEG likely has seen a stronger improvement to its earnings outlook than AMRC has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CEG currently has a forward P/E ratio of 22.12, while AMRC has a forward P/E of 27.35. We also note that CEG has a PEG ratio of 0.72. 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. AMRC currently has a PEG ratio of 1.14.
Another notable valuation metric for CEG is its P/B ratio of 2.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMRC has a P/B of 2.85.
These are just a few of the metrics contributing to CEG's Value grade of B and AMRC's Value grade of C.
CEG has seen stronger estimate revision activity and sports more attractive valuation metrics than AMRC, so it seems like value investors will conclude that CEG is the superior option right now.