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HLN or SYK: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical - Products sector have probably already heard of Haleon PLC Sponsored ADR (HLN - Free Report) and Stryker (SYK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Haleon PLC Sponsored ADR and Stryker are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that HLN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HLN currently has a forward P/E ratio of 18.96, while SYK has a forward P/E of 27.95. We also note that HLN has a PEG ratio of 2.70. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SYK currently has a PEG ratio of 2.97.
Another notable valuation metric for HLN is its P/B ratio of 1.96. 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, SYK has a P/B of 6.38.
These metrics, and several others, help HLN earn a Value grade of B, while SYK has been given a Value grade of C.
HLN stands above SYK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HLN is the superior value option right now.
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HLN or SYK: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Products sector have probably already heard of Haleon PLC Sponsored ADR (HLN - Free Report) and Stryker (SYK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Haleon PLC Sponsored ADR and Stryker are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that HLN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HLN currently has a forward P/E ratio of 18.96, while SYK has a forward P/E of 27.95. We also note that HLN has a PEG ratio of 2.70. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SYK currently has a PEG ratio of 2.97.
Another notable valuation metric for HLN is its P/B ratio of 1.96. 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, SYK has a P/B of 6.38.
These metrics, and several others, help HLN earn a Value grade of B, while SYK has been given a Value grade of C.
HLN stands above SYK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HLN is the superior value option right now.