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CSAN vs. CWEN: Which Stock Should Value Investors Buy Now?
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Investors interested in Alternative Energy - Other stocks are likely familiar with Cosan (CSAN - Free Report) and Clearway Energy (CWEN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Cosan has a Zacks Rank of #2 (Buy), while Clearway Energy has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CSAN likely has seen a stronger improvement to its earnings outlook than CWEN has recently. But this is only part of the picture 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 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.
CSAN currently has a forward P/E ratio of 7.53, while CWEN has a forward P/E of 46.17. We also note that CSAN 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. CWEN currently has a PEG ratio of 2.65.
Another notable valuation metric for CSAN is its P/B ratio of 1.49. 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, CWEN has a P/B of 1.94.
These are just a few of the metrics contributing to CSAN's Value grade of A and CWEN's Value grade of C.
CSAN sticks out from CWEN in both our Zacks Rank and Style Scores models, so value investors will likely feel that CSAN is the better option right now.
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CSAN vs. CWEN: Which Stock Should Value Investors Buy Now?
Investors interested in Alternative Energy - Other stocks are likely familiar with Cosan (CSAN - Free Report) and Clearway Energy (CWEN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Cosan has a Zacks Rank of #2 (Buy), while Clearway Energy has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CSAN likely has seen a stronger improvement to its earnings outlook than CWEN has recently. But this is only part of the picture 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 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.
CSAN currently has a forward P/E ratio of 7.53, while CWEN has a forward P/E of 46.17. We also note that CSAN 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. CWEN currently has a PEG ratio of 2.65.
Another notable valuation metric for CSAN is its P/B ratio of 1.49. 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, CWEN has a P/B of 1.94.
These are just a few of the metrics contributing to CSAN's Value grade of A and CWEN's Value grade of C.
CSAN sticks out from CWEN in both our Zacks Rank and Style Scores models, so value investors will likely feel that CSAN is the better option right now.