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PSMMY or NVR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Building Products - Home Builders sector might want to consider either Persimmon Plc (PSMMY - Free Report) or NVR (NVR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Persimmon Plc has a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PSMMY likely has seen a stronger improvement to its earnings outlook than NVR has recently. But this is only part of the picture for value investors.
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.
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.
PSMMY currently has a forward P/E ratio of 12.32, while NVR has a forward P/E of 18.27. We also note that PSMMY has a PEG ratio of 1.59. 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. NVR currently has a PEG ratio of 10.62.
Another notable valuation metric for PSMMY is its P/B ratio of 1.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVR has a P/B of 5.81.
Based on these metrics and many more, PSMMY holds a Value grade of B, while NVR has a Value grade of C.
PSMMY 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 PSMMY is likely the superior value option right now.
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PSMMY or NVR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Building Products - Home Builders sector might want to consider either Persimmon Plc (PSMMY - Free Report) or NVR (NVR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Persimmon Plc has a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PSMMY likely has seen a stronger improvement to its earnings outlook than NVR has recently. But this is only part of the picture for value investors.
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.
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.
PSMMY currently has a forward P/E ratio of 12.32, while NVR has a forward P/E of 18.27. We also note that PSMMY has a PEG ratio of 1.59. 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. NVR currently has a PEG ratio of 10.62.
Another notable valuation metric for PSMMY is its P/B ratio of 1.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVR has a P/B of 5.81.
Based on these metrics and many more, PSMMY holds a Value grade of B, while NVR has a Value grade of C.
PSMMY 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 PSMMY is likely the superior value option right now.