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NVST or SYK: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Products stocks have likely encountered both Envista (NVST - Free Report) and Stryker (SYK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Envista and Stryker are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that NVST's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
NVST currently has a forward P/E ratio of 17.70, while SYK has a forward P/E of 22.50. We also note that NVST has a PEG ratio of 1.70. 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. SYK currently has a PEG ratio of 1.96.
Another notable valuation metric for NVST is its P/B ratio of 1.32. 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, SYK has a P/B of 5.73.
These metrics, and several others, help NVST earn a Value grade of B, while SYK has been given a Value grade of C.
NVST 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 NVST is likely the superior value option right now.
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NVST or SYK: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Products stocks have likely encountered both Envista (NVST - Free Report) and Stryker (SYK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Envista and Stryker are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that NVST's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
NVST currently has a forward P/E ratio of 17.70, while SYK has a forward P/E of 22.50. We also note that NVST has a PEG ratio of 1.70. 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. SYK currently has a PEG ratio of 1.96.
Another notable valuation metric for NVST is its P/B ratio of 1.32. 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, SYK has a P/B of 5.73.
These metrics, and several others, help NVST earn a Value grade of B, while SYK has been given a Value grade of C.
NVST 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 NVST is likely the superior value option right now.