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B vs. ROLL: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Barnes Group (B - Free Report) and RBC Bearings . 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, Barnes Group is sporting a Zacks Rank of #2 (Buy), while RBC Bearings has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that B likely has seen a stronger improvement to its earnings outlook than ROLL has recently. But this is just one piece of the puzzle 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.
B currently has a forward P/E ratio of 19.52, while ROLL has a forward P/E of 35.75. We also note that B has a PEG ratio of 1.95. 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. ROLL currently has a PEG ratio of 6.09.
Another notable valuation metric for B is its P/B ratio of 2.77. 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, ROLL has a P/B of 4.22.
These are just a few of the metrics contributing to B's Value grade of B and ROLL's Value grade of F.
B stands above ROLL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that B is the superior value option right now.
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B vs. ROLL: Which Stock Should Value Investors Buy Now?
Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Barnes Group (B - Free Report) and RBC Bearings . 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, Barnes Group is sporting a Zacks Rank of #2 (Buy), while RBC Bearings has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that B likely has seen a stronger improvement to its earnings outlook than ROLL has recently. But this is just one piece of the puzzle 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.
B currently has a forward P/E ratio of 19.52, while ROLL has a forward P/E of 35.75. We also note that B has a PEG ratio of 1.95. 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. ROLL currently has a PEG ratio of 6.09.
Another notable valuation metric for B is its P/B ratio of 2.77. 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, ROLL has a P/B of 4.22.
These are just a few of the metrics contributing to B's Value grade of B and ROLL's Value grade of F.
B stands above ROLL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that B is the superior value option right now.