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PTVE or MCW: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Consumer Services - Miscellaneous sector have probably already heard of Pactiv Evergreen Inc. (PTVE - Free Report) and Mister Car Wash (MCW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Pactiv Evergreen Inc. and Mister Car Wash are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PTVE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
PTVE currently has a forward P/E ratio of 12.89, while MCW has a forward P/E of 21.09. We also note that PTVE has a PEG ratio of 0.92. 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. MCW currently has a PEG ratio of 1.88.
Another notable valuation metric for PTVE is its P/B ratio of 1.92. 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, MCW has a P/B of 2.40.
Based on these metrics and many more, PTVE holds a Value grade of A, while MCW has a Value grade of D.
PTVE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PTVE is likely the superior value option right now.
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PTVE or MCW: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Consumer Services - Miscellaneous sector have probably already heard of Pactiv Evergreen Inc. (PTVE - Free Report) and Mister Car Wash (MCW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Pactiv Evergreen Inc. and Mister Car Wash are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PTVE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
PTVE currently has a forward P/E ratio of 12.89, while MCW has a forward P/E of 21.09. We also note that PTVE has a PEG ratio of 0.92. 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. MCW currently has a PEG ratio of 1.88.
Another notable valuation metric for PTVE is its P/B ratio of 1.92. 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, MCW has a P/B of 2.40.
Based on these metrics and many more, PTVE holds a Value grade of A, while MCW has a Value grade of D.
PTVE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PTVE is likely the superior value option right now.