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PCRFY or SONO: Which Is the Better Value Stock Right Now?
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Investors interested in Audio Video Production stocks are likely familiar with Panasonic Corp. and Sonos (SONO - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Panasonic Corp. has a Zacks Rank of #2 (Buy), while Sonos 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 PCRFY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
PCRFY currently has a forward P/E ratio of 7.42, while SONO has a forward P/E of 19.94. We also note that PCRFY has a PEG ratio of 0.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SONO currently has a PEG ratio of 5.14.
Another notable valuation metric for PCRFY is its P/B ratio of 0.69. 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, SONO has a P/B of 4.01.
Based on these metrics and many more, PCRFY holds a Value grade of A, while SONO has a Value grade of F.
PCRFY 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 PCRFY is likely the superior value option right now.
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PCRFY or SONO: Which Is the Better Value Stock Right Now?
Investors interested in Audio Video Production stocks are likely familiar with Panasonic Corp. and Sonos (SONO - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Panasonic Corp. has a Zacks Rank of #2 (Buy), while Sonos 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 PCRFY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
PCRFY currently has a forward P/E ratio of 7.42, while SONO has a forward P/E of 19.94. We also note that PCRFY has a PEG ratio of 0.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SONO currently has a PEG ratio of 5.14.
Another notable valuation metric for PCRFY is its P/B ratio of 0.69. 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, SONO has a P/B of 4.01.
Based on these metrics and many more, PCRFY holds a Value grade of A, while SONO has a Value grade of F.
PCRFY 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 PCRFY is likely the superior value option right now.