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RLJ or CDP: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of RLJ Lodging (RLJ - Free Report) and COPT Defense (CDP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both RLJ Lodging and COPT Defense have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RLJ currently has a forward P/E ratio of 7.20, while CDP has a forward P/E of 9.81. We also note that RLJ has a PEG ratio of 0.91. 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. CDP currently has a PEG ratio of 2.39.
Another notable valuation metric for RLJ is its P/B ratio of 0.95. 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, CDP has a P/B of 1.81.
These are just a few of the metrics contributing to RLJ's Value grade of A and CDP's Value grade of C.
Both RLJ and CDP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RLJ is the superior value option right now.
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RLJ or CDP: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of RLJ Lodging (RLJ - Free Report) and COPT Defense (CDP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both RLJ Lodging and COPT Defense have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RLJ currently has a forward P/E ratio of 7.20, while CDP has a forward P/E of 9.81. We also note that RLJ has a PEG ratio of 0.91. 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. CDP currently has a PEG ratio of 2.39.
Another notable valuation metric for RLJ is its P/B ratio of 0.95. 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, CDP has a P/B of 1.81.
These are just a few of the metrics contributing to RLJ's Value grade of A and CDP's Value grade of C.
Both RLJ and CDP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RLJ is the superior value option right now.