We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JNPR or IDCC: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Wireless Equipment stocks are likely familiar with Juniper Networks (JNPR - Free Report) and InterDigital (IDCC - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Juniper Networks has a Zacks Rank of #2 (Buy), while InterDigital has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that JNPR likely has seen a stronger improvement to its earnings outlook than IDCC has recently. 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.
JNPR currently has a forward P/E ratio of 16.32, while IDCC has a forward P/E of 274.54. We also note that JNPR has a PEG ratio of 1.38. 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. IDCC currently has a PEG ratio of 18.30.
Another notable valuation metric for JNPR is its P/B ratio of 2.12. 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, IDCC has a P/B of 2.77.
These metrics, and several others, help JNPR earn a Value grade of B, while IDCC has been given a Value grade of C.
JNPR 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 JNPR is likely the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
JNPR or IDCC: Which Is the Better Value Stock Right Now?
Investors interested in Wireless Equipment stocks are likely familiar with Juniper Networks (JNPR - Free Report) and InterDigital (IDCC - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Juniper Networks has a Zacks Rank of #2 (Buy), while InterDigital has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that JNPR likely has seen a stronger improvement to its earnings outlook than IDCC has recently. 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.
JNPR currently has a forward P/E ratio of 16.32, while IDCC has a forward P/E of 274.54. We also note that JNPR has a PEG ratio of 1.38. 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. IDCC currently has a PEG ratio of 18.30.
Another notable valuation metric for JNPR is its P/B ratio of 2.12. 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, IDCC has a P/B of 2.77.
These metrics, and several others, help JNPR earn a Value grade of B, while IDCC has been given a Value grade of C.
JNPR 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 JNPR is likely the superior value option right now.