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HUN vs. DOW: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Chemical - Diversified stocks have likely encountered both Huntsman (HUN - Free Report) and Dow Inc. (DOW - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Huntsman is sporting a Zacks Rank of #2 (Buy), while Dow Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HUN is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
HUN currently has a forward P/E ratio of 39.44, while DOW has a forward P/E of 48.67. We also note that HUN has a PEG ratio of 7.87. 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. DOW currently has a PEG ratio of 9.73.
Another notable valuation metric for HUN is its P/B ratio of 1.60. 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, DOW has a P/B of 2.73.
These metrics, and several others, help HUN earn a Value grade of B, while DOW has been given a Value grade of C.
HUN 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 HUN is likely the superior value option right now.
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HUN vs. DOW: Which Stock Should Value Investors Buy Now?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Huntsman (HUN - Free Report) and Dow Inc. (DOW - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Huntsman is sporting a Zacks Rank of #2 (Buy), while Dow Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HUN is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
HUN currently has a forward P/E ratio of 39.44, while DOW has a forward P/E of 48.67. We also note that HUN has a PEG ratio of 7.87. 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. DOW currently has a PEG ratio of 9.73.
Another notable valuation metric for HUN is its P/B ratio of 1.60. 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, DOW has a P/B of 2.73.
These metrics, and several others, help HUN earn a Value grade of B, while DOW has been given a Value grade of C.
HUN 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 HUN is likely the superior value option right now.