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SKFRY or ESAB: Which Is the Better Value Stock Right Now?
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Investors with an interest in Metal Products - Procurement and Fabrication stocks have likely encountered both AB SKF (SKFRY - Free Report) and Esab (ESAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
AB SKF and Esab are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SKFRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SKFRY currently has a forward P/E ratio of 11.06, while ESAB has a forward P/E of 17.30. We also note that SKFRY has a PEG ratio of 0.53. 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. ESAB currently has a PEG ratio of 3.67.
Another notable valuation metric for SKFRY is its P/B ratio of 1.52. 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, ESAB has a P/B of 2.85.
Based on these metrics and many more, SKFRY holds a Value grade of A, while ESAB has a Value grade of C.
SKFRY has seen stronger estimate revision activity and sports more attractive valuation metrics than ESAB, so it seems like value investors will conclude that SKFRY is the superior option right now.
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SKFRY or ESAB: Which Is the Better Value Stock Right Now?
Investors with an interest in Metal Products - Procurement and Fabrication stocks have likely encountered both AB SKF (SKFRY - Free Report) and Esab (ESAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
AB SKF and Esab are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SKFRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SKFRY currently has a forward P/E ratio of 11.06, while ESAB has a forward P/E of 17.30. We also note that SKFRY has a PEG ratio of 0.53. 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. ESAB currently has a PEG ratio of 3.67.
Another notable valuation metric for SKFRY is its P/B ratio of 1.52. 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, ESAB has a P/B of 2.85.
Based on these metrics and many more, SKFRY holds a Value grade of A, while ESAB has a Value grade of C.
SKFRY has seen stronger estimate revision activity and sports more attractive valuation metrics than ESAB, so it seems like value investors will conclude that SKFRY is the superior option right now.