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GEN vs. TT: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Technology Services sector might want to consider either Gen Digital (GEN - Free Report) or Trane Technologies (TT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Gen Digital has a Zacks Rank of #2 (Buy), while Trane Technologies has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GEN likely has seen a stronger improvement to its earnings outlook than TT has recently. But this is only part of the picture for value investors.
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.
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.
GEN currently has a forward P/E ratio of 9.97, while TT has a forward P/E of 28.03. We also note that GEN has a PEG ratio of 0.83. 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. TT currently has a PEG ratio of 2.05.
Another notable valuation metric for GEN is its P/B ratio of 6.54. 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, TT has a P/B of 10.92.
These metrics, and several others, help GEN earn a Value grade of A, while TT has been given a Value grade of C.
GEN 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 GEN is likely the superior value option right now.
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GEN vs. TT: Which Stock Is the Better Value Option?
Investors looking for stocks in the Technology Services sector might want to consider either Gen Digital (GEN - Free Report) or Trane Technologies (TT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Gen Digital has a Zacks Rank of #2 (Buy), while Trane Technologies has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GEN likely has seen a stronger improvement to its earnings outlook than TT has recently. But this is only part of the picture for value investors.
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.
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.
GEN currently has a forward P/E ratio of 9.97, while TT has a forward P/E of 28.03. We also note that GEN has a PEG ratio of 0.83. 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. TT currently has a PEG ratio of 2.05.
Another notable valuation metric for GEN is its P/B ratio of 6.54. 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, TT has a P/B of 10.92.
These metrics, and several others, help GEN earn a Value grade of A, while TT has been given a Value grade of C.
GEN 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 GEN is likely the superior value option right now.