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NHYDY vs. TKR: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Metal Products - Procurement and Fabrication sector might want to consider either Norsk Hydro ASA (NHYDY - Free Report) or Timken (TKR - 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.
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.
Norsk Hydro ASA has a Zacks Rank of #2 (Buy), while Timken has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NHYDY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
NHYDY currently has a forward P/E ratio of 10.76, while TKR has a forward P/E of 12.88. We also note that NHYDY has a PEG ratio of 0.69. 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. TKR currently has a PEG ratio of 1.07.
Another notable valuation metric for NHYDY is its P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TKR has a P/B of 2.11.
These metrics, and several others, help NHYDY earn a Value grade of A, while TKR has been given a Value grade of C.
NHYDY 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 NHYDY is likely the superior value option right now.
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NHYDY vs. TKR: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Metal Products - Procurement and Fabrication sector might want to consider either Norsk Hydro ASA (NHYDY - Free Report) or Timken (TKR - 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.
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.
Norsk Hydro ASA has a Zacks Rank of #2 (Buy), while Timken has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NHYDY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
NHYDY currently has a forward P/E ratio of 10.76, while TKR has a forward P/E of 12.88. We also note that NHYDY has a PEG ratio of 0.69. 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. TKR currently has a PEG ratio of 1.07.
Another notable valuation metric for NHYDY is its P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TKR has a P/B of 2.11.
These metrics, and several others, help NHYDY earn a Value grade of A, while TKR has been given a Value grade of C.
NHYDY 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 NHYDY is likely the superior value option right now.