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LDOS or EADSY: Which Is the Better Value Stock Right Now?
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Investors with an interest in Aerospace - Defense stocks have likely encountered both Leidos (LDOS - Free Report) and Airbus Group (EADSY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Leidos has a Zacks Rank of #2 (Buy), while Airbus Group has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LDOS is likely seeing its earnings outlook improve to a greater extent. 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.
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.
LDOS currently has a forward P/E ratio of 15.37, while EADSY has a forward P/E of 25.08. We also note that LDOS has a PEG ratio of 1.89. 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. EADSY currently has a PEG ratio of 2.03.
Another notable valuation metric for LDOS is its P/B ratio of 3.53. 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, EADSY has a P/B of 7.33.
These metrics, and several others, help LDOS earn a Value grade of A, while EADSY has been given a Value grade of C.
LDOS sticks out from EADSY in both our Zacks Rank and Style Scores models, so value investors will likely feel that LDOS is the better option right now.
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LDOS or EADSY: Which Is the Better Value Stock Right Now?
Investors with an interest in Aerospace - Defense stocks have likely encountered both Leidos (LDOS - Free Report) and Airbus Group (EADSY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Leidos has a Zacks Rank of #2 (Buy), while Airbus Group has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LDOS is likely seeing its earnings outlook improve to a greater extent. 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.
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.
LDOS currently has a forward P/E ratio of 15.37, while EADSY has a forward P/E of 25.08. We also note that LDOS has a PEG ratio of 1.89. 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. EADSY currently has a PEG ratio of 2.03.
Another notable valuation metric for LDOS is its P/B ratio of 3.53. 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, EADSY has a P/B of 7.33.
These metrics, and several others, help LDOS earn a Value grade of A, while EADSY has been given a Value grade of C.
LDOS sticks out from EADSY in both our Zacks Rank and Style Scores models, so value investors will likely feel that LDOS is the better option right now.