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WERN vs. LSTR: Which Stock Should Value Investors Buy Now?
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Investors interested in Transportation - Truck stocks are likely familiar with Werner Enterprises (WERN - Free Report) and Landstar System (LSTR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, both Werner Enterprises and Landstar System are sporting 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 both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
WERN currently has a forward P/E ratio of 13.02, while LSTR has a forward P/E of 17.53. We also note that WERN has a PEG ratio of 0.99. 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. LSTR currently has a PEG ratio of 1.46.
Another notable valuation metric for WERN is its P/B ratio of 2.40. 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, LSTR has a P/B of 7.27.
These metrics, and several others, help WERN earn a Value grade of A, while LSTR has been given a Value grade of C.
Both WERN and LSTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that WERN is the superior value option right now.
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WERN vs. LSTR: Which Stock Should Value Investors Buy Now?
Investors interested in Transportation - Truck stocks are likely familiar with Werner Enterprises (WERN - Free Report) and Landstar System (LSTR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, both Werner Enterprises and Landstar System are sporting 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 both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
WERN currently has a forward P/E ratio of 13.02, while LSTR has a forward P/E of 17.53. We also note that WERN has a PEG ratio of 0.99. 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. LSTR currently has a PEG ratio of 1.46.
Another notable valuation metric for WERN is its P/B ratio of 2.40. 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, LSTR has a P/B of 7.27.
These metrics, and several others, help WERN earn a Value grade of A, while LSTR has been given a Value grade of C.
Both WERN and LSTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that WERN is the superior value option right now.