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PETQ or BSX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Products sector might want to consider either PetIQ (PETQ - Free Report) or Boston Scientific (BSX - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, PetIQ has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PETQ has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
PETQ currently has a forward P/E ratio of 8.19, while BSX has a forward P/E of 26.47. We also note that PETQ has a PEG ratio of 1.02. 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. BSX currently has a PEG ratio of 2.56.
Another notable valuation metric for PETQ is its P/B ratio of 1.44. 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, BSX has a P/B of 3.71.
Based on these metrics and many more, PETQ holds a Value grade of A, while BSX has a Value grade of C.
PETQ stands above BSX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PETQ is the superior value option right now.
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PETQ or BSX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Products sector might want to consider either PetIQ (PETQ - Free Report) or Boston Scientific (BSX - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, PetIQ has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PETQ has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
PETQ currently has a forward P/E ratio of 8.19, while BSX has a forward P/E of 26.47. We also note that PETQ has a PEG ratio of 1.02. 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. BSX currently has a PEG ratio of 2.56.
Another notable valuation metric for PETQ is its P/B ratio of 1.44. 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, BSX has a P/B of 3.71.
Based on these metrics and many more, PETQ holds a Value grade of A, while BSX has a Value grade of C.
PETQ stands above BSX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PETQ is the superior value option right now.