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SRCL or WM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Waste Removal Services sector might want to consider either Stericycle (SRCL - Free Report) or Waste Management (WM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Currently, Stericycle has a Zacks Rank of #2 (Buy), while Waste Management has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SRCL has an improving earnings outlook. But this is only part of the picture for value investors.
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.
SRCL currently has a forward P/E ratio of 22.79, while WM has a forward P/E of 30.79. We also note that SRCL has a PEG ratio of 2.85. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WM currently has a PEG ratio of 3.22.
Another notable valuation metric for SRCL is its P/B ratio of 1.93. 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, WM has a P/B of 12.37.
These metrics, and several others, help SRCL earn a Value grade of B, while WM has been given a Value grade of C.
SRCL sticks out from WM in both our Zacks Rank and Style Scores models, so value investors will likely feel that SRCL is the better option right now.
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SRCL or WM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Waste Removal Services sector might want to consider either Stericycle (SRCL - Free Report) or Waste Management (WM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Currently, Stericycle has a Zacks Rank of #2 (Buy), while Waste Management has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SRCL has an improving earnings outlook. But this is only part of the picture for value investors.
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.
SRCL currently has a forward P/E ratio of 22.79, while WM has a forward P/E of 30.79. We also note that SRCL has a PEG ratio of 2.85. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WM currently has a PEG ratio of 3.22.
Another notable valuation metric for SRCL is its P/B ratio of 1.93. 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, WM has a P/B of 12.37.
These metrics, and several others, help SRCL earn a Value grade of B, while WM has been given a Value grade of C.
SRCL sticks out from WM in both our Zacks Rank and Style Scores models, so value investors will likely feel that SRCL is the better option right now.