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COP vs. WHD: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Oil and Gas - Integrated - United States stocks have likely encountered both ConocoPhillips (COP - Free Report) and Cactus, Inc. (WHD - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
ConocoPhillips and Cactus, Inc. are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
COP currently has a forward P/E ratio of 13.10, while WHD has a forward P/E of 15.93. We also note that COP has a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WHD currently has a PEG ratio of 1.70.
Another notable valuation metric for COP is its P/B ratio of 2.95. 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, WHD has a P/B of 3.81.
Based on these metrics and many more, COP holds a Value grade of B, while WHD has a Value grade of D.
Both COP and WHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that COP is the superior value option right now.
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COP vs. WHD: Which Stock Should Value Investors Buy Now?
Investors with an interest in Oil and Gas - Integrated - United States stocks have likely encountered both ConocoPhillips (COP - Free Report) and Cactus, Inc. (WHD - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
ConocoPhillips and Cactus, Inc. are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
COP currently has a forward P/E ratio of 13.10, while WHD has a forward P/E of 15.93. We also note that COP has a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WHD currently has a PEG ratio of 1.70.
Another notable valuation metric for COP is its P/B ratio of 2.95. 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, WHD has a P/B of 3.81.
Based on these metrics and many more, COP holds a Value grade of B, while WHD has a Value grade of D.
Both COP and WHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that COP is the superior value option right now.