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STRL or HWM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Sterling Infrastructure (STRL - Free Report) and Howmet (HWM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Sterling Infrastructure is sporting a Zacks Rank of #1 (Strong Buy), while Howmet has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STRL likely has seen a stronger improvement to its earnings outlook than HWM has recently. 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 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.
STRL currently has a forward P/E ratio of 10.27, while HWM has a forward P/E of 27.59. We also note that STRL has a PEG ratio of 0.57. 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. HWM currently has a PEG ratio of 1.15.
Another notable valuation metric for STRL is its P/B ratio of 2.23. 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, HWM has a P/B of 4.95.
These are just a few of the metrics contributing to STRL's Value grade of B and HWM's Value grade of D.
STRL stands above HWM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRL is the superior value option right now.
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STRL or HWM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Sterling Infrastructure (STRL - Free Report) and Howmet (HWM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Sterling Infrastructure is sporting a Zacks Rank of #1 (Strong Buy), while Howmet has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STRL likely has seen a stronger improvement to its earnings outlook than HWM has recently. 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 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.
STRL currently has a forward P/E ratio of 10.27, while HWM has a forward P/E of 27.59. We also note that STRL has a PEG ratio of 0.57. 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. HWM currently has a PEG ratio of 1.15.
Another notable valuation metric for STRL is its P/B ratio of 2.23. 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, HWM has a P/B of 4.95.
These are just a few of the metrics contributing to STRL's Value grade of B and HWM's Value grade of D.
STRL stands above HWM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRL is the superior value option right now.