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SSUMY or FSS: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Diversified Operations sector have probably already heard of Sumitomo Corp. (SSUMY - Free Report) and Federal Signal (FSS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Sumitomo Corp. has a Zacks Rank of #2 (Buy), while Federal Signal has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SSUMY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
SSUMY currently has a forward P/E ratio of 9.00, while FSS has a forward P/E of 29.70. We also note that SSUMY has a PEG ratio of 1.77. 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. FSS currently has a PEG ratio of 2.12.
Another notable valuation metric for SSUMY is its P/B ratio of 1.06. 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, FSS has a P/B of 5.71.
These metrics, and several others, help SSUMY earn a Value grade of A, while FSS has been given a Value grade of D.
SSUMY stands above FSS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SSUMY is the superior value option right now.
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SSUMY or FSS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Diversified Operations sector have probably already heard of Sumitomo Corp. (SSUMY - Free Report) and Federal Signal (FSS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Sumitomo Corp. has a Zacks Rank of #2 (Buy), while Federal Signal has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SSUMY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
SSUMY currently has a forward P/E ratio of 9.00, while FSS has a forward P/E of 29.70. We also note that SSUMY has a PEG ratio of 1.77. 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. FSS currently has a PEG ratio of 2.12.
Another notable valuation metric for SSUMY is its P/B ratio of 1.06. 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, FSS has a P/B of 5.71.
These metrics, and several others, help SSUMY earn a Value grade of A, while FSS has been given a Value grade of D.
SSUMY stands above FSS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SSUMY is the superior value option right now.