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ARKAY or FMC: Which Is the Better Value Stock Right Now?
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Investors with an interest in Chemical - Diversified stocks have likely encountered both Arkema SA (ARKAY - Free Report) and FMC (FMC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Right now, Arkema SA is sporting a Zacks Rank of #1 (Strong Buy), while FMC has a Zacks Rank of #5 (Strong Sell). This means that ARKAY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ARKAY currently has a forward P/E ratio of 12.57, while FMC has a forward P/E of 13.51. We also note that ARKAY has a PEG ratio of 0.42. 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. FMC currently has a PEG ratio of 1.23.
Another notable valuation metric for ARKAY is its P/B ratio of 1.52. 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, FMC has a P/B of 3.74.
These are just a few of the metrics contributing to ARKAY's Value grade of B and FMC's Value grade of C.
ARKAY 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 ARKAY is likely the superior value option right now.
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ARKAY or FMC: Which Is the Better Value Stock Right Now?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Arkema SA (ARKAY - Free Report) and FMC (FMC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Right now, Arkema SA is sporting a Zacks Rank of #1 (Strong Buy), while FMC has a Zacks Rank of #5 (Strong Sell). This means that ARKAY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ARKAY currently has a forward P/E ratio of 12.57, while FMC has a forward P/E of 13.51. We also note that ARKAY has a PEG ratio of 0.42. 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. FMC currently has a PEG ratio of 1.23.
Another notable valuation metric for ARKAY is its P/B ratio of 1.52. 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, FMC has a P/B of 3.74.
These are just a few of the metrics contributing to ARKAY's Value grade of B and FMC's Value grade of C.
ARKAY 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 ARKAY is likely the superior value option right now.