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LYB or APD: Which Is the Better Value Stock Right Now?
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Investors interested in Chemical - Diversified stocks are likely familiar with LyondellBasell (LYB - Free Report) and Air Products and Chemicals (APD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, LyondellBasell is sporting a Zacks Rank of #1 (Strong Buy), while Air Products and Chemicals has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LYB has an improving earnings outlook. But this is just one piece of the puzzle 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.
LYB currently has a forward P/E ratio of 6.40, while APD has a forward P/E of 31.73. We also note that LYB has a PEG ratio of 0.80. 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. APD currently has a PEG ratio of 2.80.
Another notable valuation metric for LYB is its P/B ratio of 3.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, APD has a P/B of 4.87.
Based on these metrics and many more, LYB holds a Value grade of B, while APD has a Value grade of D.
LYB 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 LYB is likely the superior value option right now.
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LYB or APD: Which Is the Better Value Stock Right Now?
Investors interested in Chemical - Diversified stocks are likely familiar with LyondellBasell (LYB - Free Report) and Air Products and Chemicals (APD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, LyondellBasell is sporting a Zacks Rank of #1 (Strong Buy), while Air Products and Chemicals has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LYB has an improving earnings outlook. But this is just one piece of the puzzle 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.
LYB currently has a forward P/E ratio of 6.40, while APD has a forward P/E of 31.73. We also note that LYB has a PEG ratio of 0.80. 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. APD currently has a PEG ratio of 2.80.
Another notable valuation metric for LYB is its P/B ratio of 3.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, APD has a P/B of 4.87.
Based on these metrics and many more, LYB holds a Value grade of B, while APD has a Value grade of D.
LYB 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 LYB is likely the superior value option right now.