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ELV or DHR: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical Services stocks have likely encountered both Elevance Health (ELV - Free Report) and Danaher (DHR - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Elevance Health is sporting a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ELV likely has seen a stronger improvement to its earnings outlook than DHR has recently. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ELV currently has a forward P/E ratio of 15.70, while DHR has a forward P/E of 23.84. We also note that ELV has a PEG ratio of 2.22. 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. DHR currently has a PEG ratio of 2.53.
Another notable valuation metric for ELV is its P/B ratio of 2.04. 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, DHR has a P/B of 2.72.
These are just a few of the metrics contributing to ELV's Value grade of A and DHR's Value grade of D.
ELV stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ELV is the superior value option right now.
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ELV or DHR: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical Services stocks have likely encountered both Elevance Health (ELV - Free Report) and Danaher (DHR - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Elevance Health is sporting a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ELV likely has seen a stronger improvement to its earnings outlook than DHR has recently. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ELV currently has a forward P/E ratio of 15.70, while DHR has a forward P/E of 23.84. We also note that ELV has a PEG ratio of 2.22. 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. DHR currently has a PEG ratio of 2.53.
Another notable valuation metric for ELV is its P/B ratio of 2.04. 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, DHR has a P/B of 2.72.
These are just a few of the metrics contributing to ELV's Value grade of A and DHR's Value grade of D.
ELV stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ELV is the superior value option right now.