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BMY or AZN: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Bristol Myers Squibb (BMY - Free Report) or Astrazeneca (AZN - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Bristol Myers Squibb has a Zacks Rank of #2 (Buy), while Astrazeneca has a Zacks Rank of #3 (Hold) right now. This means that BMY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
BMY currently has a forward P/E ratio of 9.55, while AZN has a forward P/E of 26.08. We also note that BMY has a PEG ratio of 1.14. 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 1.58.
Another notable valuation metric for BMY is its P/B ratio of 2.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AZN has a P/B of 11.36.
Based on these metrics and many more, BMY holds a Value grade of A, while AZN has a Value grade of C.
BMY 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 BMY is likely the superior value option right now.
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BMY or AZN: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Bristol Myers Squibb (BMY - Free Report) or Astrazeneca (AZN - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Bristol Myers Squibb has a Zacks Rank of #2 (Buy), while Astrazeneca has a Zacks Rank of #3 (Hold) right now. This means that BMY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
BMY currently has a forward P/E ratio of 9.55, while AZN has a forward P/E of 26.08. We also note that BMY has a PEG ratio of 1.14. 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 1.58.
Another notable valuation metric for BMY is its P/B ratio of 2.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AZN has a P/B of 11.36.
Based on these metrics and many more, BMY holds a Value grade of A, while AZN has a Value grade of C.
BMY 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 BMY is likely the superior value option right now.