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GM or FOXF: Which Is the Better Value Stock Right Now?
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Investors with an interest in Automotive - Domestic stocks have likely encountered both General Motors Company (GM - Free Report) and Fox Factory Holding (FOXF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both General Motors Company and Fox Factory Holding have a Zacks Rank of # 2 (Buy) right now. 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. 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.
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.
GM currently has a forward P/E ratio of 8.64, while FOXF has a forward P/E of 36.58. We also note that GM has a PEG ratio of 0.88. 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. FOXF currently has a PEG ratio of 1.47.
Another notable valuation metric for GM is its P/B ratio of 1.37. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FOXF has a P/B of 8.14.
Based on these metrics and many more, GM holds a Value grade of A, while FOXF has a Value grade of C.
Both GM and FOXF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GM is the superior value option right now.
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GM or FOXF: Which Is the Better Value Stock Right Now?
Investors with an interest in Automotive - Domestic stocks have likely encountered both General Motors Company (GM - Free Report) and Fox Factory Holding (FOXF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both General Motors Company and Fox Factory Holding have a Zacks Rank of # 2 (Buy) right now. 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. 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.
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.
GM currently has a forward P/E ratio of 8.64, while FOXF has a forward P/E of 36.58. We also note that GM has a PEG ratio of 0.88. 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. FOXF currently has a PEG ratio of 1.47.
Another notable valuation metric for GM is its P/B ratio of 1.37. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FOXF has a P/B of 8.14.
Based on these metrics and many more, GM holds a Value grade of A, while FOXF has a Value grade of C.
Both GM and FOXF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GM is the superior value option right now.