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ASBFY vs. NSRGY: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Associated British Foods PLC (ASBFY - Free Report) and Nestle SA (NSRGY - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Right now, Associated British Foods PLC is sporting a Zacks Rank of #1 (Strong Buy), while Nestle SA has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ASBFY likely has seen a stronger improvement to its earnings outlook than NSRGY has recently. But this is just one piece of the puzzle 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.
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.
ASBFY currently has a forward P/E ratio of 14.72, while NSRGY has a forward P/E of 21.23. We also note that ASBFY has a PEG ratio of 2.12. 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. NSRGY currently has a PEG ratio of 2.61.
Another notable valuation metric for ASBFY is its P/B ratio of 1.46. 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, NSRGY has a P/B of 7.19.
These are just a few of the metrics contributing to ASBFY's Value grade of B and NSRGY's Value grade of D.
ASBFY 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 ASBFY is likely the superior value option right now.
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ASBFY vs. NSRGY: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Associated British Foods PLC (ASBFY - Free Report) and Nestle SA (NSRGY - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Right now, Associated British Foods PLC is sporting a Zacks Rank of #1 (Strong Buy), while Nestle SA has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ASBFY likely has seen a stronger improvement to its earnings outlook than NSRGY has recently. But this is just one piece of the puzzle 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.
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.
ASBFY currently has a forward P/E ratio of 14.72, while NSRGY has a forward P/E of 21.23. We also note that ASBFY has a PEG ratio of 2.12. 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. NSRGY currently has a PEG ratio of 2.61.
Another notable valuation metric for ASBFY is its P/B ratio of 1.46. 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, NSRGY has a P/B of 7.19.
These are just a few of the metrics contributing to ASBFY's Value grade of B and NSRGY's Value grade of D.
ASBFY 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 ASBFY is likely the superior value option right now.