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ESLOY or PODD: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Products stocks have likely encountered both EssilorLuxottica Unsponsored ADR (ESLOY - Free Report) and Insulet (PODD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
EssilorLuxottica Unsponsored ADR has a Zacks Rank of #2 (Buy), while Insulet has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ESLOY has an improving earnings outlook. 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.
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.
ESLOY currently has a forward P/E ratio of 24.25, while PODD has a forward P/E of 206.42. We also note that ESLOY has a PEG ratio of 3.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PODD currently has a PEG ratio of 5.88.
Another notable valuation metric for ESLOY is its P/B ratio of 2.01. 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, PODD has a P/B of 39.24.
Based on these metrics and many more, ESLOY holds a Value grade of B, while PODD has a Value grade of D.
ESLOY 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 ESLOY is likely the superior value option right now.