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AZZ or ABBNY: Which Is the Better Value Stock Right Now?
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Investors interested in Manufacturing - Electronics stocks are likely familiar with AZZ (AZZ - Free Report) and ABB (ABBNY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, AZZ is sporting a Zacks Rank of #1 (Strong Buy), while ABB has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AZZ is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AZZ currently has a forward P/E ratio of 17.35, while ABBNY has a forward P/E of 25.42. We also note that AZZ has a PEG ratio of 1.24. 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. ABBNY currently has a PEG ratio of 3.01.
Another notable valuation metric for AZZ is its P/B ratio of 3.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ABBNY has a P/B of 7.49.
These metrics, and several others, help AZZ earn a Value grade of B, while ABBNY has been given a Value grade of C.
AZZ 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 AZZ is likely the superior value option right now.
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AZZ or ABBNY: Which Is the Better Value Stock Right Now?
Investors interested in Manufacturing - Electronics stocks are likely familiar with AZZ (AZZ - Free Report) and ABB (ABBNY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, AZZ is sporting a Zacks Rank of #1 (Strong Buy), while ABB has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AZZ is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AZZ currently has a forward P/E ratio of 17.35, while ABBNY has a forward P/E of 25.42. We also note that AZZ has a PEG ratio of 1.24. 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. ABBNY currently has a PEG ratio of 3.01.
Another notable valuation metric for AZZ is its P/B ratio of 3.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ABBNY has a P/B of 7.49.
These metrics, and several others, help AZZ earn a Value grade of B, while ABBNY has been given a Value grade of C.
AZZ 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 AZZ is likely the superior value option right now.