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ETRN 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 Equitrans Midstream (ETRN - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Equitrans Midstream is sporting a Zacks Rank of #2 (Buy), while Cactus, Inc. has a Zacks Rank of #3 (Hold). This means that ETRN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ETRN currently has a forward P/E ratio of 11.70, while WHD has a forward P/E of 13. We also note that ETRN has a PEG ratio of 0.53. 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 6.70.
Another notable valuation metric for ETRN is its P/B ratio of 3.10. 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, WHD has a P/B of 3.19.
These are just a few of the metrics contributing to ETRN's Value grade of B and WHD's Value grade of D.
ETRN stands above WHD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ETRN is the superior value option right now.
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ETRN 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 Equitrans Midstream (ETRN - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Equitrans Midstream is sporting a Zacks Rank of #2 (Buy), while Cactus, Inc. has a Zacks Rank of #3 (Hold). This means that ETRN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ETRN currently has a forward P/E ratio of 11.70, while WHD has a forward P/E of 13. We also note that ETRN has a PEG ratio of 0.53. 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 6.70.
Another notable valuation metric for ETRN is its P/B ratio of 3.10. 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, WHD has a P/B of 3.19.
These are just a few of the metrics contributing to ETRN's Value grade of B and WHD's Value grade of D.
ETRN stands above WHD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ETRN is the superior value option right now.