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FLEX vs. GRMN: Which Stock Is the Better Value Option?
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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 offers value investors a better bang for their buck right now? We'll need to 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.
Flex has a Zacks Rank of #2 (Buy), while Garmin has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FLEX is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
FLEX currently has a forward P/E ratio of 18.23, while GRMN has a forward P/E of 28.51. We also note that FLEX has a PEG ratio of 1.75. 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. GRMN currently has a PEG ratio of 2.55.
Another notable valuation metric for FLEX is its P/B ratio of 4.06. 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 5.36.
These metrics, and several others, help FLEX earn a Value grade of A, while GRMN has been given a Value grade of D.
FLEX sticks out from GRMN in both our Zacks Rank and Style Scores models, so value investors will likely feel that FLEX is the better option right now.
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FLEX vs. GRMN: Which Stock Is the Better Value Option?
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 offers value investors a better bang for their buck right now? We'll need to 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.
Flex has a Zacks Rank of #2 (Buy), while Garmin has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FLEX is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
FLEX currently has a forward P/E ratio of 18.23, while GRMN has a forward P/E of 28.51. We also note that FLEX has a PEG ratio of 1.75. 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. GRMN currently has a PEG ratio of 2.55.
Another notable valuation metric for FLEX is its P/B ratio of 4.06. 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 5.36.
These metrics, and several others, help FLEX earn a Value grade of A, while GRMN has been given a Value grade of D.
FLEX sticks out from GRMN in both our Zacks Rank and Style Scores models, so value investors will likely feel that FLEX is the better option right now.