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FTV or AME: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Electronics - Testing Equipment sector have probably already heard of Fortive (FTV - Free Report) and Ametek (AME - 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.
Fortive and Ametek are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
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.
FTV currently has a forward P/E ratio of 22.85, while AME has a forward P/E of 26.24. We also note that FTV has a PEG ratio of 2.72. 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. AME currently has a PEG ratio of 2.86.
Another notable valuation metric for FTV is its P/B ratio of 2.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AME has a P/B of 4.72.
These are just a few of the metrics contributing to FTV's Value grade of B and AME's Value grade of C.
Both FTV and AME are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FTV is the superior value option right now.
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FTV or AME: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Electronics - Testing Equipment sector have probably already heard of Fortive (FTV - Free Report) and Ametek (AME - 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.
Fortive and Ametek are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
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.
FTV currently has a forward P/E ratio of 22.85, while AME has a forward P/E of 26.24. We also note that FTV has a PEG ratio of 2.72. 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. AME currently has a PEG ratio of 2.86.
Another notable valuation metric for FTV is its P/B ratio of 2.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AME has a P/B of 4.72.
These are just a few of the metrics contributing to FTV's Value grade of B and AME's Value grade of C.
Both FTV and AME are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FTV is the superior value option right now.