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FLEX vs. GRMN: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Flex (FLEX - Free Report) or Garmin (GRMN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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, Flex is sporting a Zacks Rank of #2 (Buy), while Garmin has a Zacks Rank of #3 (Hold). This means that FLEX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
FLEX currently has a forward P/E ratio of 14.55, while GRMN has a forward P/E of 25.58. We also note that FLEX has a PEG ratio of 1.61. 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. GRMN currently has a PEG ratio of 2.29.
Another notable valuation metric for FLEX is its P/B ratio of 3.24. 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, GRMN has a P/B of 4.78.
Based on these metrics and many more, FLEX holds a Value grade of A, while GRMN has a Value grade of D.
FLEX has seen stronger estimate revision activity and sports more attractive valuation metrics than GRMN, so it seems like value investors will conclude that FLEX is the superior option right now.
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FLEX vs. GRMN: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Flex (FLEX - Free Report) or Garmin (GRMN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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, Flex is sporting a Zacks Rank of #2 (Buy), while Garmin has a Zacks Rank of #3 (Hold). This means that FLEX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
FLEX currently has a forward P/E ratio of 14.55, while GRMN has a forward P/E of 25.58. We also note that FLEX has a PEG ratio of 1.61. 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. GRMN currently has a PEG ratio of 2.29.
Another notable valuation metric for FLEX is its P/B ratio of 3.24. 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, GRMN has a P/B of 4.78.
Based on these metrics and many more, FLEX holds a Value grade of A, while GRMN has a Value grade of D.
FLEX has seen stronger estimate revision activity and sports more attractive valuation metrics than GRMN, so it seems like value investors will conclude that FLEX is the superior option right now.