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.
NXRT or ESS: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of NexPoint Residential Trust Inc. (NXRT - Free Report) and Essex Property Trust (ESS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
NexPoint Residential Trust Inc. has a Zacks Rank of #2 (Buy), while Essex Property Trust has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NXRT has an improving earnings outlook. However, value investors will care about much more than just this.
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.
NXRT currently has a forward P/E ratio of 10.23, while ESS has a forward P/E of 18.06. We also note that NXRT has a PEG ratio of 1.71. 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. ESS currently has a PEG ratio of 6.00.
Another notable valuation metric for NXRT is its P/B ratio of 2.23. 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, ESS has a P/B of 3.22.
These metrics, and several others, help NXRT earn a Value grade of B, while ESS has been given a Value grade of D.
NXRT sticks out from ESS in both our Zacks Rank and Style Scores models, so value investors will likely feel that NXRT is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NXRT or ESS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of NexPoint Residential Trust Inc. (NXRT - Free Report) and Essex Property Trust (ESS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
NexPoint Residential Trust Inc. has a Zacks Rank of #2 (Buy), while Essex Property Trust has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NXRT has an improving earnings outlook. However, value investors will care about much more than just this.
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.
NXRT currently has a forward P/E ratio of 10.23, while ESS has a forward P/E of 18.06. We also note that NXRT has a PEG ratio of 1.71. 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. ESS currently has a PEG ratio of 6.00.
Another notable valuation metric for NXRT is its P/B ratio of 2.23. 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, ESS has a P/B of 3.22.
These metrics, and several others, help NXRT earn a Value grade of B, while ESS has been given a Value grade of D.
NXRT sticks out from ESS in both our Zacks Rank and Style Scores models, so value investors will likely feel that NXRT is the better option right now.