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JBHT vs. XPO: Which Stock Is the Better Value Option?
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Investors interested in Transportation - Truck stocks are likely familiar with JB Hunt (JBHT - Free Report) and XPO (XPO - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, JB Hunt is sporting a Zacks Rank of #2 (Buy), while XPO has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JBHT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
JBHT currently has a forward P/E ratio of 27.95, while XPO has a forward P/E of 36.72. We also note that JBHT has a PEG ratio of 2.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. XPO currently has a PEG ratio of 2.68.
Another notable valuation metric for JBHT is its P/B ratio of 4.48. 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, XPO has a P/B of 8.85.
These metrics, and several others, help JBHT earn a Value grade of B, while XPO has been given a Value grade of D.
JBHT sticks out from XPO in both our Zacks Rank and Style Scores models, so value investors will likely feel that JBHT is the better option right now.
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JBHT vs. XPO: Which Stock Is the Better Value Option?
Investors interested in Transportation - Truck stocks are likely familiar with JB Hunt (JBHT - Free Report) and XPO (XPO - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, JB Hunt is sporting a Zacks Rank of #2 (Buy), while XPO has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JBHT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
JBHT currently has a forward P/E ratio of 27.95, while XPO has a forward P/E of 36.72. We also note that JBHT has a PEG ratio of 2.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. XPO currently has a PEG ratio of 2.68.
Another notable valuation metric for JBHT is its P/B ratio of 4.48. 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, XPO has a P/B of 8.85.
These metrics, and several others, help JBHT earn a Value grade of B, while XPO has been given a Value grade of D.
JBHT sticks out from XPO in both our Zacks Rank and Style Scores models, so value investors will likely feel that JBHT is the better option right now.