We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ORA vs. GEV: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in Alternative Energy - Other stocks are likely familiar with Ormat Technologies (ORA - Free Report) and GE Vernova (GEV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Ormat Technologies and GE Vernova are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ORA likely has seen a stronger improvement to its earnings outlook than GEV has recently. 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.
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.
ORA currently has a forward P/E ratio of 34.22, while GEV has a forward P/E of 64.89. We also note that ORA has a PEG ratio of 3.42. 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. GEV currently has a PEG ratio of 3.60.
Another notable valuation metric for ORA is its P/B ratio of 1.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GEV has a P/B of 13.10.
These are just a few of the metrics contributing to ORA's Value grade of B and GEV's Value grade of D.
ORA stands above GEV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ORA is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ORA vs. GEV: Which Stock Should Value Investors Buy Now?
Investors interested in Alternative Energy - Other stocks are likely familiar with Ormat Technologies (ORA - Free Report) and GE Vernova (GEV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Ormat Technologies and GE Vernova are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ORA likely has seen a stronger improvement to its earnings outlook than GEV has recently. 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.
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.
ORA currently has a forward P/E ratio of 34.22, while GEV has a forward P/E of 64.89. We also note that ORA has a PEG ratio of 3.42. 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. GEV currently has a PEG ratio of 3.60.
Another notable valuation metric for ORA is its P/B ratio of 1.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GEV has a P/B of 13.10.
These are just a few of the metrics contributing to ORA's Value grade of B and GEV's Value grade of D.
ORA stands above GEV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ORA is the superior value option right now.