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PRIM or DY: Which Is the Better Value Stock Right Now?
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Investors interested in Building Products - Heavy Construction stocks are likely familiar with Primoris Services (PRIM - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Primoris Services has a Zacks Rank of #2 (Buy), while Dycom Industries has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PRIM has an improving earnings outlook. But this is only part of the picture for value investors.
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.
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.
PRIM currently has a forward P/E ratio of 14.06, while DY has a forward P/E of 19.46. We also note that PRIM has a PEG ratio of 1.41. 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. DY currently has a PEG ratio of 2.29.
Another notable valuation metric for PRIM is its P/B ratio of 1.83. 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, DY has a P/B of 2.11.
Based on these metrics and many more, PRIM holds a Value grade of A, while DY has a Value grade of D.
PRIM 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 PRIM is likely the superior value option right now.
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PRIM or DY: Which Is the Better Value Stock Right Now?
Investors interested in Building Products - Heavy Construction stocks are likely familiar with Primoris Services (PRIM - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Primoris Services has a Zacks Rank of #2 (Buy), while Dycom Industries has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PRIM has an improving earnings outlook. But this is only part of the picture for value investors.
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.
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.
PRIM currently has a forward P/E ratio of 14.06, while DY has a forward P/E of 19.46. We also note that PRIM has a PEG ratio of 1.41. 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. DY currently has a PEG ratio of 2.29.
Another notable valuation metric for PRIM is its P/B ratio of 1.83. 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, DY has a P/B of 2.11.
Based on these metrics and many more, PRIM holds a Value grade of A, while DY has a Value grade of D.
PRIM 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 PRIM is likely the superior value option right now.