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DHLGY or EXPD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Transportation - Services sector have probably already heard of DHL Group Sponsored ADR (DHLGY - Free Report) and Expeditors International (EXPD - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, DHL Group Sponsored ADR has a Zacks Rank of #1 (Strong Buy), while Expeditors International has a Zacks Rank of #2 (Buy). This means that DHLGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
DHLGY currently has a forward P/E ratio of 16.32, while EXPD has a forward P/E of 27.25. We also note that DHLGY has a PEG ratio of 1.51. 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. EXPD currently has a PEG ratio of 3.04.
Another notable valuation metric for DHLGY is its P/B ratio of 2.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EXPD has a P/B of 10.63.
Based on these metrics and many more, DHLGY holds a Value grade of B, while EXPD has a Value grade of D.
DHLGY sticks out from EXPD in both our Zacks Rank and Style Scores models, so value investors will likely feel that DHLGY is the better option right now.
Image: Bigstock
DHLGY or EXPD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Transportation - Services sector have probably already heard of DHL Group Sponsored ADR (DHLGY - Free Report) and Expeditors International (EXPD - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, DHL Group Sponsored ADR has a Zacks Rank of #1 (Strong Buy), while Expeditors International has a Zacks Rank of #2 (Buy). This means that DHLGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
DHLGY currently has a forward P/E ratio of 16.32, while EXPD has a forward P/E of 27.25. We also note that DHLGY has a PEG ratio of 1.51. 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. EXPD currently has a PEG ratio of 3.04.
Another notable valuation metric for DHLGY is its P/B ratio of 2.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EXPD has a P/B of 10.63.
Based on these metrics and many more, DHLGY holds a Value grade of B, while EXPD has a Value grade of D.
DHLGY sticks out from EXPD in both our Zacks Rank and Style Scores models, so value investors will likely feel that DHLGY is the better option right now.