We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BMY or AZN: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Bristol-Myers Squibb (BMY - Free Report) and Astrazeneca (AZN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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, Bristol-Myers Squibb is sporting a Zacks Rank of #2 (Buy), while Astrazeneca has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BMY likely has seen a stronger improvement to its earnings outlook than AZN has recently. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BMY currently has a forward P/E ratio of 13.28, while AZN has a forward P/E of 27.39. We also note that BMY has a PEG ratio of 1.34. 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. AZN currently has a PEG ratio of 1.61.
Another notable valuation metric for BMY is its P/B ratio of 5.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AZN has a P/B of 9.41.
Based on these metrics and many more, BMY holds a Value grade of A, while AZN has a Value grade of C.
BMY has seen stronger estimate revision activity and sports more attractive valuation metrics than AZN, so it seems like value investors will conclude that BMY is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BMY or AZN: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Bristol-Myers Squibb (BMY - Free Report) and Astrazeneca (AZN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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, Bristol-Myers Squibb is sporting a Zacks Rank of #2 (Buy), while Astrazeneca has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BMY likely has seen a stronger improvement to its earnings outlook than AZN has recently. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BMY currently has a forward P/E ratio of 13.28, while AZN has a forward P/E of 27.39. We also note that BMY has a PEG ratio of 1.34. 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. AZN currently has a PEG ratio of 1.61.
Another notable valuation metric for BMY is its P/B ratio of 5.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AZN has a P/B of 9.41.
Based on these metrics and many more, BMY holds a Value grade of A, while AZN has a Value grade of C.
BMY has seen stronger estimate revision activity and sports more attractive valuation metrics than AZN, so it seems like value investors will conclude that BMY is the superior option right now.