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NNBR or ESAB: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Metal Products - Procurement and Fabrication sector have probably already heard of NN Inc. (NNBR - Free Report) and Esab (ESAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
NN Inc. has a Zacks Rank of #2 (Buy), while Esab has a Zacks Rank of #3 (Hold) right now. This means that NNBR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
NNBR currently has a forward P/E ratio of 10.86, while ESAB has a forward P/E of 20.52. We also note that NNBR has a PEG ratio of 0.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ESAB currently has a PEG ratio of 2.10.
Another notable valuation metric for NNBR is its P/B ratio of 1.54. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ESAB has a P/B of 3.39.
These metrics, and several others, help NNBR earn a Value grade of A, while ESAB has been given a Value grade of D.
NNBR has seen stronger estimate revision activity and sports more attractive valuation metrics than ESAB, so it seems like value investors will conclude that NNBR is the superior option right now.
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NNBR or ESAB: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Metal Products - Procurement and Fabrication sector have probably already heard of NN Inc. (NNBR - Free Report) and Esab (ESAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
NN Inc. has a Zacks Rank of #2 (Buy), while Esab has a Zacks Rank of #3 (Hold) right now. This means that NNBR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
NNBR currently has a forward P/E ratio of 10.86, while ESAB has a forward P/E of 20.52. We also note that NNBR has a PEG ratio of 0.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ESAB currently has a PEG ratio of 2.10.
Another notable valuation metric for NNBR is its P/B ratio of 1.54. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ESAB has a P/B of 3.39.
These metrics, and several others, help NNBR earn a Value grade of A, while ESAB has been given a Value grade of D.
NNBR has seen stronger estimate revision activity and sports more attractive valuation metrics than ESAB, so it seems like value investors will conclude that NNBR is the superior option right now.