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PRU vs. GSHD: Which Stock Should Value Investors Buy Now?
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Investors interested in Insurance - Multi line stocks are likely familiar with Prudential (PRU - Free Report) and Goosehead Insurance (GSHD - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Prudential has a Zacks Rank of #2 (Buy), while Goosehead Insurance has a Zacks Rank of #4 (Sell) right now. This means that PRU'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 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PRU currently has a forward P/E ratio of 7.84, while GSHD has a forward P/E of 47.67. We also note that PRU has a PEG ratio of 0.67. 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. GSHD currently has a PEG ratio of 1.50.
Another notable valuation metric for PRU 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, GSHD has a P/B of 545.08.
Based on these metrics and many more, PRU holds a Value grade of A, while GSHD has a Value grade of F.
PRU 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 PRU is likely the superior value option right now.
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PRU vs. GSHD: Which Stock Should Value Investors Buy Now?
Investors interested in Insurance - Multi line stocks are likely familiar with Prudential (PRU - Free Report) and Goosehead Insurance (GSHD - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Prudential has a Zacks Rank of #2 (Buy), while Goosehead Insurance has a Zacks Rank of #4 (Sell) right now. This means that PRU'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 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PRU currently has a forward P/E ratio of 7.84, while GSHD has a forward P/E of 47.67. We also note that PRU has a PEG ratio of 0.67. 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. GSHD currently has a PEG ratio of 1.50.
Another notable valuation metric for PRU 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, GSHD has a P/B of 545.08.
Based on these metrics and many more, PRU holds a Value grade of A, while GSHD has a Value grade of F.
PRU 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 PRU is likely the superior value option right now.