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PCRFY vs. SONO: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Audio Video Production stocks have likely encountered both Panasonic Corp. and Sonos (SONO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Both Panasonic Corp. and Sonos 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 factor that value investors are interested in.
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.
PCRFY currently has a forward P/E ratio of 10.59, while SONO has a forward P/E of 10.68. We also note that PCRFY has a PEG ratio of 0.41. 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. SONO currently has a PEG ratio of 2.75.
Another notable valuation metric for PCRFY is its P/B ratio of 0.79. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SONO has a P/B of 2.45.
These are just a few of the metrics contributing to PCRFY's Value grade of A and SONO's Value grade of C.
Both PCRFY and SONO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PCRFY is the superior value option right now.
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PCRFY vs. SONO: Which Stock Should Value Investors Buy Now?
Investors with an interest in Audio Video Production stocks have likely encountered both Panasonic Corp. and Sonos (SONO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Both Panasonic Corp. and Sonos 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 factor that value investors are interested in.
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.
PCRFY currently has a forward P/E ratio of 10.59, while SONO has a forward P/E of 10.68. We also note that PCRFY has a PEG ratio of 0.41. 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. SONO currently has a PEG ratio of 2.75.
Another notable valuation metric for PCRFY is its P/B ratio of 0.79. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SONO has a P/B of 2.45.
These are just a few of the metrics contributing to PCRFY's Value grade of A and SONO's Value grade of C.
Both PCRFY and SONO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PCRFY is the superior value option right now.