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FLEX vs. ROK: Which Stock Is the Better Value Option?
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Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both Flex (FLEX - Free Report) and Rockwell Automation (ROK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Flex and Rockwell Automation are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
FLEX currently has a forward P/E ratio of 19.89, while ROK has a forward P/E of 33.86. We also note that FLEX has a PEG ratio of 1.50. 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. ROK currently has a PEG ratio of 2.74.
Another notable valuation metric for FLEX is its P/B ratio of 4.58. 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, ROK has a P/B of 12.25.
These are just a few of the metrics contributing to FLEX's Value grade of B and ROK's Value grade of D.
Both FLEX and ROK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FLEX is the superior value option right now.
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FLEX vs. ROK: Which Stock Is the Better Value Option?
Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both Flex (FLEX - Free Report) and Rockwell Automation (ROK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Flex and Rockwell Automation are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
FLEX currently has a forward P/E ratio of 19.89, while ROK has a forward P/E of 33.86. We also note that FLEX has a PEG ratio of 1.50. 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. ROK currently has a PEG ratio of 2.74.
Another notable valuation metric for FLEX is its P/B ratio of 4.58. 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, ROK has a P/B of 12.25.
These are just a few of the metrics contributing to FLEX's Value grade of B and ROK's Value grade of D.
Both FLEX and ROK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FLEX is the superior value option right now.