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CWENA or TLN: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Clearway Energy (CWENA) or Talen Energy Corporation (TLN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Clearway Energy and Talen Energy Corporation are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CWENA currently has a forward P/E ratio of 19.07, while TLN has a forward P/E of 59.28. We also note that CWENA has a PEG ratio of 0.34. 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. TLN currently has a PEG ratio of 3.82.
Another notable valuation metric for CWENA is its P/B ratio of 1.04. 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, TLN has a P/B of 13.15.
These metrics, and several others, help CWENA earn a Value grade of A, while TLN has been given a Value grade of C.
Both CWENA and TLN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CWENA is the superior value option right now.
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CWENA or TLN: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Clearway Energy (CWENA) or Talen Energy Corporation (TLN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Clearway Energy and Talen Energy Corporation are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CWENA currently has a forward P/E ratio of 19.07, while TLN has a forward P/E of 59.28. We also note that CWENA has a PEG ratio of 0.34. 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. TLN currently has a PEG ratio of 3.82.
Another notable valuation metric for CWENA is its P/B ratio of 1.04. 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, TLN has a P/B of 13.15.
These metrics, and several others, help CWENA earn a Value grade of A, while TLN has been given a Value grade of C.
Both CWENA and TLN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CWENA is the superior value option right now.