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CARR or KLAC: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Carrier Global (CARR - Free Report) or KLA (KLAC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Both Carrier Global and KLA have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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.
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.
CARR currently has a forward P/E ratio of 19.17, while KLAC has a forward P/E of 23.48. We also note that CARR has a PEG ratio of 1.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KLAC currently has a PEG ratio of 3.54.
Another notable valuation metric for CARR is its P/B ratio of 4.85. 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, KLAC has a P/B of 23.93.
These are just a few of the metrics contributing to CARR's Value grade of B and KLAC's Value grade of C.
Both CARR and KLAC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CARR is the superior value option right now.
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CARR or KLAC: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Carrier Global (CARR - Free Report) or KLA (KLAC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Both Carrier Global and KLA have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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.
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.
CARR currently has a forward P/E ratio of 19.17, while KLAC has a forward P/E of 23.48. We also note that CARR has a PEG ratio of 1.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KLAC currently has a PEG ratio of 3.54.
Another notable valuation metric for CARR is its P/B ratio of 4.85. 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, KLAC has a P/B of 23.93.
These are just a few of the metrics contributing to CARR's Value grade of B and KLAC's Value grade of C.
Both CARR and KLAC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CARR is the superior value option right now.