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NUS or EL: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Cosmetics sector might want to consider either Nu Skin Enterprises (NUS - Free Report) or Estee Lauder (EL - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Estee Lauder has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NUS has an improving earnings outlook. 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 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.
NUS currently has a forward P/E ratio of 15.49, while EL has a forward P/E of 47.69. We also note that NUS has a PEG ratio of 2.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EL currently has a PEG ratio of 3.66.
Another notable valuation metric for NUS is its P/B ratio of 3.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EL has a P/B of 20.16.
These metrics, and several others, help NUS earn a Value grade of A, while EL has been given a Value grade of D.
NUS has seen stronger estimate revision activity and sports more attractive valuation metrics than EL, so it seems like value investors will conclude that NUS is the superior option right now.
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NUS or EL: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Cosmetics sector might want to consider either Nu Skin Enterprises (NUS - Free Report) or Estee Lauder (EL - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Estee Lauder has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NUS has an improving earnings outlook. 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 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.
NUS currently has a forward P/E ratio of 15.49, while EL has a forward P/E of 47.69. We also note that NUS has a PEG ratio of 2.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EL currently has a PEG ratio of 3.66.
Another notable valuation metric for NUS is its P/B ratio of 3.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EL has a P/B of 20.16.
These metrics, and several others, help NUS earn a Value grade of A, while EL has been given a Value grade of D.
NUS has seen stronger estimate revision activity and sports more attractive valuation metrics than EL, so it seems like value investors will conclude that NUS is the superior option right now.