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TAP vs. NAPA: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Molson Coors Brewing (TAP - Free Report) or The Duckhorn Portfolio, Inc. (NAPA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Molson Coors Brewing has a Zacks Rank of #2 (Buy), while The Duckhorn Portfolio, Inc. has a Zacks Rank of #3 (Hold). This means that TAP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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 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.
TAP currently has a forward P/E ratio of 11.39, while NAPA has a forward P/E of 15.72. We also note that TAP has a PEG ratio of 1.22. 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. NAPA currently has a PEG ratio of 2.12.
Another notable valuation metric for TAP is its P/B ratio of 0.95. 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, NAPA has a P/B of 1.32.
These metrics, and several others, help TAP earn a Value grade of A, while NAPA has been given a Value grade of C.
TAP has seen stronger estimate revision activity and sports more attractive valuation metrics than NAPA, so it seems like value investors will conclude that TAP is the superior option right now.
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TAP vs. NAPA: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Molson Coors Brewing (TAP - Free Report) or The Duckhorn Portfolio, Inc. (NAPA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Molson Coors Brewing has a Zacks Rank of #2 (Buy), while The Duckhorn Portfolio, Inc. has a Zacks Rank of #3 (Hold). This means that TAP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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 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.
TAP currently has a forward P/E ratio of 11.39, while NAPA has a forward P/E of 15.72. We also note that TAP has a PEG ratio of 1.22. 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. NAPA currently has a PEG ratio of 2.12.
Another notable valuation metric for TAP is its P/B ratio of 0.95. 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, NAPA has a P/B of 1.32.
These metrics, and several others, help TAP earn a Value grade of A, while NAPA has been given a Value grade of C.
TAP has seen stronger estimate revision activity and sports more attractive valuation metrics than NAPA, so it seems like value investors will conclude that TAP is the superior option right now.