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KMT or CNM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Manufacturing - Tools & Related Products sector might want to consider either Kennametal (KMT - Free Report) or Core & Main (CNM - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kennametal and Core & Main are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that KMT likely has seen a stronger improvement to its earnings outlook than CNM has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
KMT currently has a forward P/E ratio of 6.44, while CNM has a forward P/E of 13.38. We also note that KMT has a PEG ratio of 0.31. 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. CNM currently has a PEG ratio of 1.68.
Another notable valuation metric for KMT is its P/B ratio of 1.5. 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, CNM has a P/B of 3.75.
These metrics, and several others, help KMT earn a Value grade of A, while CNM has been given a Value grade of C.
KMT sticks out from CNM in both our Zacks Rank and Style Scores models, so value investors will likely feel that KMT is the better option right now.
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KMT or CNM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Manufacturing - Tools & Related Products sector might want to consider either Kennametal (KMT - Free Report) or Core & Main (CNM - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kennametal and Core & Main are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that KMT likely has seen a stronger improvement to its earnings outlook than CNM has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
KMT currently has a forward P/E ratio of 6.44, while CNM has a forward P/E of 13.38. We also note that KMT has a PEG ratio of 0.31. 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. CNM currently has a PEG ratio of 1.68.
Another notable valuation metric for KMT is its P/B ratio of 1.5. 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, CNM has a P/B of 3.75.
These metrics, and several others, help KMT earn a Value grade of A, while CNM has been given a Value grade of C.
KMT sticks out from CNM in both our Zacks Rank and Style Scores models, so value investors will likely feel that KMT is the better option right now.