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GMED or PEN: Which Is the Better Value Stock Right Now?
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Investors interested in Medical - Instruments stocks are likely familiar with Globus Medical (GMED - Free Report) and Penumbra (PEN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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, both Globus Medical and Penumbra are holding a Zacks Rank of # 2 (Buy). 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. 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 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.
GMED currently has a forward P/E ratio of 22.21, while PEN has a forward P/E of 71.06. We also note that GMED has a PEG ratio of 1.76. 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. PEN currently has a PEG ratio of 2.
Another notable valuation metric for GMED is its P/B ratio of 2.13. 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, PEN has a P/B of 6.54.
These metrics, and several others, help GMED earn a Value grade of B, while PEN has been given a Value grade of C.
Both GMED and PEN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GMED is the superior value option right now.
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GMED or PEN: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Instruments stocks are likely familiar with Globus Medical (GMED - Free Report) and Penumbra (PEN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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, both Globus Medical and Penumbra are holding a Zacks Rank of # 2 (Buy). 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. 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 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.
GMED currently has a forward P/E ratio of 22.21, while PEN has a forward P/E of 71.06. We also note that GMED has a PEG ratio of 1.76. 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. PEN currently has a PEG ratio of 2.
Another notable valuation metric for GMED is its P/B ratio of 2.13. 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, PEN has a P/B of 6.54.
These metrics, and several others, help GMED earn a Value grade of B, while PEN has been given a Value grade of C.
Both GMED and PEN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GMED is the superior value option right now.