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FN vs. NJDCY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Fabrinet (FN - Free Report) or Nidec Corp. (NJDCY - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Fabrinet has a Zacks Rank of #2 (Buy), while Nidec Corp. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that FN likely has seen a stronger improvement to its earnings outlook than NJDCY has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
FN currently has a forward P/E ratio of 16.09, while NJDCY has a forward P/E of 32.79. We also note that FN has a PEG ratio of 1.24. 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. NJDCY currently has a PEG ratio of 2.94.
Another notable valuation metric for FN is its P/B ratio of 2.45. 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, NJDCY has a P/B of 3.17.
Based on these metrics and many more, FN holds a Value grade of B, while NJDCY has a Value grade of C.
FN has seen stronger estimate revision activity and sports more attractive valuation metrics than NJDCY, so it seems like value investors will conclude that FN is the superior option right now.
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FN vs. NJDCY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Fabrinet (FN - Free Report) or Nidec Corp. (NJDCY - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Fabrinet has a Zacks Rank of #2 (Buy), while Nidec Corp. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that FN likely has seen a stronger improvement to its earnings outlook than NJDCY has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
FN currently has a forward P/E ratio of 16.09, while NJDCY has a forward P/E of 32.79. We also note that FN has a PEG ratio of 1.24. 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. NJDCY currently has a PEG ratio of 2.94.
Another notable valuation metric for FN is its P/B ratio of 2.45. 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, NJDCY has a P/B of 3.17.
Based on these metrics and many more, FN holds a Value grade of B, while NJDCY has a Value grade of C.
FN has seen stronger estimate revision activity and sports more attractive valuation metrics than NJDCY, so it seems like value investors will conclude that FN is the superior option right now.