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WERN or HTLD: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Transportation - Truck sector might want to consider either Werner Enterprises (WERN - Free Report) or Heartland Express (HTLD - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Werner Enterprises is sporting a Zacks Rank of #2 (Buy), while Heartland Express 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 WERN has an improving earnings outlook. But this is just one piece of the puzzle 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.

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.

WERN currently has a forward P/E ratio of 12.53, while HTLD has a forward P/E of 19.98. We also note that WERN has a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HTLD currently has a PEG ratio of 1.33.

Another notable valuation metric for WERN is its P/B ratio of 1.85. 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, HTLD has a P/B of 2.50.

These metrics, and several others, help WERN earn a Value grade of B, while HTLD has been given a Value grade of C.

WERN stands above HTLD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WERN is the superior value option right now.


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