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B vs. RBC: Which Stock Should Value Investors Buy Now?
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Investors interested in Manufacturing - General Industrial stocks are likely familiar with Barnes Group (B - Free Report) and RBC Bearings (RBC - 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.
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.
Barnes Group has a Zacks Rank of #2 (Buy), while RBC Bearings has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that B is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
B currently has a forward P/E ratio of 18.75, while RBC has a forward P/E of 26.98. We also note that B has a PEG ratio of 1.88. 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. RBC currently has a PEG ratio of 4.60.
Another notable valuation metric for B is its P/B ratio of 1.50. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RBC has a P/B of 2.57.
These are just a few of the metrics contributing to B's Value grade of B and RBC's Value grade of F.
B 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 B is likely the superior value option right now.
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B vs. RBC: Which Stock Should Value Investors Buy Now?
Investors interested in Manufacturing - General Industrial stocks are likely familiar with Barnes Group (B - Free Report) and RBC Bearings (RBC - 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.
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.
Barnes Group has a Zacks Rank of #2 (Buy), while RBC Bearings has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that B is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
B currently has a forward P/E ratio of 18.75, while RBC has a forward P/E of 26.98. We also note that B has a PEG ratio of 1.88. 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. RBC currently has a PEG ratio of 4.60.
Another notable valuation metric for B is its P/B ratio of 1.50. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RBC has a P/B of 2.57.
These are just a few of the metrics contributing to B's Value grade of B and RBC's Value grade of F.
B 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 B is likely the superior value option right now.