We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ACM or BCKIY: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Aecom Technology (ACM - Free Report) and Babcock International Group PLC (BCKIY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Aecom Technology has a Zacks Rank of #2 (Buy), while Babcock International Group PLC has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ACM likely has seen a stronger improvement to its earnings outlook than BCKIY has recently. But this is just one piece of the puzzle for value investors.
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.
ACM currently has a forward P/E ratio of 14.18, while BCKIY has a forward P/E of 19.76. We also note that ACM has a PEG ratio of 1.05. 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. BCKIY currently has a PEG ratio of 1.38.
Another notable valuation metric for ACM 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, BCKIY has a P/B of 8.58.
These are just a few of the metrics contributing to ACM's Value grade of B and BCKIY's Value grade of C.
ACM stands above BCKIY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ACM is the superior value option right now.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
ACM or BCKIY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Aecom Technology (ACM - Free Report) and Babcock International Group PLC (BCKIY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Aecom Technology has a Zacks Rank of #2 (Buy), while Babcock International Group PLC has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ACM likely has seen a stronger improvement to its earnings outlook than BCKIY has recently. But this is just one piece of the puzzle for value investors.
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.
ACM currently has a forward P/E ratio of 14.18, while BCKIY has a forward P/E of 19.76. We also note that ACM has a PEG ratio of 1.05. 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. BCKIY currently has a PEG ratio of 1.38.
Another notable valuation metric for ACM 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, BCKIY has a P/B of 8.58.
These are just a few of the metrics contributing to ACM's Value grade of B and BCKIY's Value grade of C.
ACM stands above BCKIY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ACM is the superior value option right now.