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HELE or EL: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Cosmetics sector have probably already heard of Helen of Troy (HELE - Free Report) and Estee Lauder (EL - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Helen of Troy is sporting a Zacks Rank of #2 (Buy), while Estee Lauder has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HELE is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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 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.
HELE currently has a forward P/E ratio of 7.61, while EL has a forward P/E of 52.90. We also note that HELE has a PEG ratio of 1.52. 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. EL currently has a PEG ratio of 6.13.
Another notable valuation metric for HELE is its P/B ratio of 0.77. 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, EL has a P/B of 6.19.
These are just a few of the metrics contributing to HELE's Value grade of A and EL's Value grade of C.
HELE 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 HELE is likely the superior value option right now.
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HELE or EL: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Cosmetics sector have probably already heard of Helen of Troy (HELE - Free Report) and Estee Lauder (EL - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Helen of Troy is sporting a Zacks Rank of #2 (Buy), while Estee Lauder has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HELE is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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 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.
HELE currently has a forward P/E ratio of 7.61, while EL has a forward P/E of 52.90. We also note that HELE has a PEG ratio of 1.52. 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. EL currently has a PEG ratio of 6.13.
Another notable valuation metric for HELE is its P/B ratio of 0.77. 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, EL has a P/B of 6.19.
These are just a few of the metrics contributing to HELE's Value grade of A and EL's Value grade of C.
HELE 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 HELE is likely the superior value option right now.