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PNW or NWE: Which Is the Better Value Stock Right Now?
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Investors with an interest in Utility - Electric Power stocks have likely encountered both Pinnacle West (PNW - Free Report) and NorthWestern (NWE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.
Right now, Pinnacle West is sporting a Zacks Rank of #2 (Buy), while NorthWestern has a Zacks Rank of #4 (Sell). This means that PNW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
PNW currently has a forward P/E ratio of 21.66, while NWE has a forward P/E of 22.68. We also note that PNW has a PEG ratio of 3.73. 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. NWE currently has a PEG ratio of 4.35.
Another notable valuation metric for PNW is its P/B ratio of 1.7. 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, NWE has a P/B of 1.79.
These are just a few of the metrics contributing to PNW's Value grade of B and NWE's Value grade of D.
PNW 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 PNW is likely the superior value option right now.
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PNW or NWE: Which Is the Better Value Stock Right Now?
Investors with an interest in Utility - Electric Power stocks have likely encountered both Pinnacle West (PNW - Free Report) and NorthWestern (NWE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.
Right now, Pinnacle West is sporting a Zacks Rank of #2 (Buy), while NorthWestern has a Zacks Rank of #4 (Sell). This means that PNW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
PNW currently has a forward P/E ratio of 21.66, while NWE has a forward P/E of 22.68. We also note that PNW has a PEG ratio of 3.73. 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. NWE currently has a PEG ratio of 4.35.
Another notable valuation metric for PNW is its P/B ratio of 1.7. 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, NWE has a P/B of 1.79.
These are just a few of the metrics contributing to PNW's Value grade of B and NWE's Value grade of D.
PNW 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 PNW is likely the superior value option right now.