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BCKIY vs. HWM: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Babcock International Group PLC (BCKIY - Free Report) and Howmet (HWM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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.
Currently, Babcock International Group PLC has a Zacks Rank of #2 (Buy), while Howmet 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 BCKIY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
BCKIY currently has a forward P/E ratio of 13.67, while HWM has a forward P/E of 31.25. We also note that BCKIY has a PEG ratio of 0.39. 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. HWM currently has a PEG ratio of 1.60.
Another notable valuation metric for BCKIY is its P/B ratio of 6.97. 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, HWM has a P/B of 7.03.
These metrics, and several others, help BCKIY earn a Value grade of A, while HWM has been given a Value grade of D.
BCKIY sticks out from HWM in both our Zacks Rank and Style Scores models, so value investors will likely feel that BCKIY is the better option right now.
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BCKIY vs. HWM: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Babcock International Group PLC (BCKIY - Free Report) and Howmet (HWM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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.
Currently, Babcock International Group PLC has a Zacks Rank of #2 (Buy), while Howmet 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 BCKIY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
BCKIY currently has a forward P/E ratio of 13.67, while HWM has a forward P/E of 31.25. We also note that BCKIY has a PEG ratio of 0.39. 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. HWM currently has a PEG ratio of 1.60.
Another notable valuation metric for BCKIY is its P/B ratio of 6.97. 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, HWM has a P/B of 7.03.
These metrics, and several others, help BCKIY earn a Value grade of A, while HWM has been given a Value grade of D.
BCKIY sticks out from HWM in both our Zacks Rank and Style Scores models, so value investors will likely feel that BCKIY is the better option right now.