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.
POR vs. PNW: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in Utility - Electric Power stocks are likely familiar with Portland General Electric (POR - Free Report) and Pinnacle West (PNW - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Portland General Electric has a Zacks Rank of #2 (Buy), while Pinnacle West has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that POR likely has seen a stronger improvement to its earnings outlook than PNW has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
POR currently has a forward P/E ratio of 13.63, while PNW has a forward P/E of 20.42. We also note that POR has a PEG ratio of 4.01. 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. PNW currently has a PEG ratio of 9.63.
Another notable valuation metric for POR is its P/B ratio of 1.25. 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, PNW has a P/B of 1.63.
These metrics, and several others, help POR earn a Value grade of A, while PNW has been given a Value grade of C.
POR has seen stronger estimate revision activity and sports more attractive valuation metrics than PNW, so it seems like value investors will conclude that POR is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
POR vs. PNW: Which Stock Should Value Investors Buy Now?
Investors interested in Utility - Electric Power stocks are likely familiar with Portland General Electric (POR - Free Report) and Pinnacle West (PNW - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Portland General Electric has a Zacks Rank of #2 (Buy), while Pinnacle West has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that POR likely has seen a stronger improvement to its earnings outlook than PNW has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
POR currently has a forward P/E ratio of 13.63, while PNW has a forward P/E of 20.42. We also note that POR has a PEG ratio of 4.01. 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. PNW currently has a PEG ratio of 9.63.
Another notable valuation metric for POR is its P/B ratio of 1.25. 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, PNW has a P/B of 1.63.
These metrics, and several others, help POR earn a Value grade of A, while PNW has been given a Value grade of C.
POR has seen stronger estimate revision activity and sports more attractive valuation metrics than PNW, so it seems like value investors will conclude that POR is the superior option right now.