We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CCU vs. SAM: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Cervecerias Unidas (CCU - Free Report) or Boston Beer (SAM - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Cervecerias Unidas has a Zacks Rank of #1 (Strong Buy), while Boston Beer has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than SAM has recently. 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.
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.
CCU currently has a forward P/E ratio of 11.70, while SAM has a forward P/E of 31.42. We also note that CCU has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAM currently has a PEG ratio of 1.09.
Another notable valuation metric for CCU is its P/B ratio of 1.30. 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, SAM has a P/B of 3.81.
These metrics, and several others, help CCU earn a Value grade of A, while SAM has been given a Value grade of C.
CCU sticks out from SAM in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCU is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CCU vs. SAM: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Cervecerias Unidas (CCU - Free Report) or Boston Beer (SAM - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Cervecerias Unidas has a Zacks Rank of #1 (Strong Buy), while Boston Beer has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than SAM has recently. 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.
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.
CCU currently has a forward P/E ratio of 11.70, while SAM has a forward P/E of 31.42. We also note that CCU has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAM currently has a PEG ratio of 1.09.
Another notable valuation metric for CCU is its P/B ratio of 1.30. 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, SAM has a P/B of 3.81.
These metrics, and several others, help CCU earn a Value grade of A, while SAM has been given a Value grade of C.
CCU sticks out from SAM in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCU is the better option right now.