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SJM or NSRGY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Smucker (SJM - Free Report) or Nestle SA (NSRGY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Smucker has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SJM likely has seen a stronger improvement to its earnings outlook than NSRGY has recently. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SJM currently has a forward P/E ratio of 11.64, while NSRGY has a forward P/E of 20.12. We also note that SJM has a PEG ratio of 1.79. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NSRGY currently has a PEG ratio of 2.45.
Another notable valuation metric for SJM is its P/B ratio of 1.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NSRGY has a P/B of 7.15.
Based on these metrics and many more, SJM holds a Value grade of B, while NSRGY has a Value grade of C.
SJM stands above NSRGY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SJM is the superior value option right now.
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SJM or NSRGY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Smucker (SJM - Free Report) or Nestle SA (NSRGY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Smucker has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SJM likely has seen a stronger improvement to its earnings outlook than NSRGY has recently. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SJM currently has a forward P/E ratio of 11.64, while NSRGY has a forward P/E of 20.12. We also note that SJM has a PEG ratio of 1.79. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NSRGY currently has a PEG ratio of 2.45.
Another notable valuation metric for SJM is its P/B ratio of 1.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NSRGY has a P/B of 7.15.
Based on these metrics and many more, SJM holds a Value grade of B, while NSRGY has a Value grade of C.
SJM stands above NSRGY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SJM is the superior value option right now.