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.
NX or HCMLY: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Quanex Building Products (NX - Free Report) and Holcim Ltd Unsponsored ADR (HCMLY - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Quanex Building Products has a Zacks Rank of #2 (Buy), while Holcim Ltd Unsponsored ADR has a Zacks Rank of #5 (Strong Sell) right now. This means that NX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
NX currently has a forward P/E ratio of 7.51, while HCMLY has a forward P/E of 20.82. We also note that NX has a PEG ratio of 0.54. 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. HCMLY currently has a PEG ratio of 2.07.
Another notable valuation metric for NX is its P/B ratio of 0.9. 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, HCMLY has a P/B of 1.44.
Based on these metrics and many more, NX holds a Value grade of A, while HCMLY has a Value grade of C.
NX 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 NX is likely 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
NX or HCMLY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Quanex Building Products (NX - Free Report) and Holcim Ltd Unsponsored ADR (HCMLY - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Quanex Building Products has a Zacks Rank of #2 (Buy), while Holcim Ltd Unsponsored ADR has a Zacks Rank of #5 (Strong Sell) right now. This means that NX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
NX currently has a forward P/E ratio of 7.51, while HCMLY has a forward P/E of 20.82. We also note that NX has a PEG ratio of 0.54. 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. HCMLY currently has a PEG ratio of 2.07.
Another notable valuation metric for NX is its P/B ratio of 0.9. 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, HCMLY has a P/B of 1.44.
Based on these metrics and many more, NX holds a Value grade of A, while HCMLY has a Value grade of C.
NX 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 NX is likely the superior value option right now.