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EME vs. DY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Building Products - Heavy Construction sector have probably already heard of Emcor Group (EME - Free Report) and Dycom Industries (DY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Emcor Group has a Zacks Rank of #1 (Strong Buy), while Dycom Industries has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EME has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
EME currently has a forward P/E ratio of 14.20, while DY has a forward P/E of 25.38. We also note that EME has a PEG ratio of 0.95. 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. DY currently has a PEG ratio of 2.99.
Another notable valuation metric for EME is its P/B ratio of 2.26. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DY has a P/B of 2.86.
Based on these metrics and many more, EME holds a Value grade of A, while DY has a Value grade of C.
EME stands above DY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EME is the superior value option right now.
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EME vs. DY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Building Products - Heavy Construction sector have probably already heard of Emcor Group (EME - Free Report) and Dycom Industries (DY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Emcor Group has a Zacks Rank of #1 (Strong Buy), while Dycom Industries has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EME has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
EME currently has a forward P/E ratio of 14.20, while DY has a forward P/E of 25.38. We also note that EME has a PEG ratio of 0.95. 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. DY currently has a PEG ratio of 2.99.
Another notable valuation metric for EME is its P/B ratio of 2.26. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DY has a P/B of 2.86.
Based on these metrics and many more, EME holds a Value grade of A, while DY has a Value grade of C.
EME stands above DY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EME is the superior value option right now.