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BLD vs. WMS: Which Stock Should Value Investors Buy Now?
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Investors interested in Building Products - Miscellaneous stocks are likely familiar with TopBuild (BLD - Free Report) and Advanced Drainage Systems (WMS - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, TopBuild is sporting a Zacks Rank of #2 (Buy), while Advanced Drainage Systems has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BLD has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
BLD currently has a forward P/E ratio of 18.10, while WMS has a forward P/E of 23.85. We also note that BLD has a PEG ratio of 1.81. 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. WMS currently has a PEG ratio of 2.10.
Another notable valuation metric for BLD is its P/B ratio of 4.93. 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, WMS has a P/B of 9.96.
These metrics, and several others, help BLD earn a Value grade of B, while WMS has been given a Value grade of C.
BLD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BLD is likely the superior value option right now.
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BLD vs. WMS: Which Stock Should Value Investors Buy Now?
Investors interested in Building Products - Miscellaneous stocks are likely familiar with TopBuild (BLD - Free Report) and Advanced Drainage Systems (WMS - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, TopBuild is sporting a Zacks Rank of #2 (Buy), while Advanced Drainage Systems has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BLD has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
BLD currently has a forward P/E ratio of 18.10, while WMS has a forward P/E of 23.85. We also note that BLD has a PEG ratio of 1.81. 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. WMS currently has a PEG ratio of 2.10.
Another notable valuation metric for BLD is its P/B ratio of 4.93. 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, WMS has a P/B of 9.96.
These metrics, and several others, help BLD earn a Value grade of B, while WMS has been given a Value grade of C.
BLD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BLD is likely the superior value option right now.