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NVST or ABT: Which Is the Better Value Stock Right Now?
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Investors interested in Medical - Products stocks are likely familiar with Envista (NVST - Free Report) and Abbott (ABT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Envista has a Zacks Rank of #2 (Buy), while Abbott has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NVST is likely seeing its earnings outlook improve to a greater extent. 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 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.
NVST currently has a forward P/E ratio of 17.51, while ABT has a forward P/E of 19.11. We also note that NVST has a PEG ratio of 1.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABT currently has a PEG ratio of 1.96.
Another notable valuation metric for NVST is its P/B ratio of 1.42. 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, ABT has a P/B of 3.53.
Based on these metrics and many more, NVST holds a Value grade of B, while ABT has a Value grade of C.
NVST stands above ABT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NVST is the superior value option right now.
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NVST or ABT: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Products stocks are likely familiar with Envista (NVST - Free Report) and Abbott (ABT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Envista has a Zacks Rank of #2 (Buy), while Abbott has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NVST is likely seeing its earnings outlook improve to a greater extent. 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 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.
NVST currently has a forward P/E ratio of 17.51, while ABT has a forward P/E of 19.11. We also note that NVST has a PEG ratio of 1.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABT currently has a PEG ratio of 1.96.
Another notable valuation metric for NVST is its P/B ratio of 1.42. 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, ABT has a P/B of 3.53.
Based on these metrics and many more, NVST holds a Value grade of B, while ABT has a Value grade of C.
NVST stands above ABT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NVST is the superior value option right now.