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ENS vs. ZWS: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - Free Report) or Zurn Water (ZWS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
EnerSys has a Zacks Rank of #2 (Buy), while Zurn Water has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ENS likely has seen a stronger improvement to its earnings outlook than ZWS has recently. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ENS currently has a forward P/E ratio of 10.74, while ZWS has a forward P/E of 28.36. We also note that ENS has a PEG ratio of 0.77. 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. ZWS currently has a PEG ratio of 1.81.
Another notable valuation metric for ENS is its P/B ratio of 2.16. 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, ZWS has a P/B of 3.51.
These metrics, and several others, help ENS earn a Value grade of A, while ZWS has been given a Value grade of D.
ENS has seen stronger estimate revision activity and sports more attractive valuation metrics than ZWS, so it seems like value investors will conclude that ENS is the superior option right now.
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ENS vs. ZWS: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - Free Report) or Zurn Water (ZWS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
EnerSys has a Zacks Rank of #2 (Buy), while Zurn Water has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ENS likely has seen a stronger improvement to its earnings outlook than ZWS has recently. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ENS currently has a forward P/E ratio of 10.74, while ZWS has a forward P/E of 28.36. We also note that ENS has a PEG ratio of 0.77. 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. ZWS currently has a PEG ratio of 1.81.
Another notable valuation metric for ENS is its P/B ratio of 2.16. 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, ZWS has a P/B of 3.51.
These metrics, and several others, help ENS earn a Value grade of A, while ZWS has been given a Value grade of D.
ENS has seen stronger estimate revision activity and sports more attractive valuation metrics than ZWS, so it seems like value investors will conclude that ENS is the superior option right now.