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IFNNY vs. AVGO: Which Stock Should Value Investors Buy Now?
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Investors interested in Electronics - Semiconductors stocks are likely familiar with Infineon Technologies AG (IFNNY - Free Report) and Broadcom Inc. (AVGO - 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, Infineon Technologies AG has a Zacks Rank of #2 (Buy), while Broadcom Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IFNNY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
IFNNY currently has a forward P/E ratio of 14.22, while AVGO has a forward P/E of 20.67. We also note that IFNNY has a PEG ratio of 0.87. 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. AVGO currently has a PEG ratio of 1.53.
Another notable valuation metric for IFNNY is its P/B ratio of 3.57. 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, AVGO has a P/B of 16.28.
These metrics, and several others, help IFNNY earn a Value grade of B, while AVGO has been given a Value grade of D.
IFNNY stands above AVGO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IFNNY is the superior value option right now.
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IFNNY vs. AVGO: Which Stock Should Value Investors Buy Now?
Investors interested in Electronics - Semiconductors stocks are likely familiar with Infineon Technologies AG (IFNNY - Free Report) and Broadcom Inc. (AVGO - 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, Infineon Technologies AG has a Zacks Rank of #2 (Buy), while Broadcom Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IFNNY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
IFNNY currently has a forward P/E ratio of 14.22, while AVGO has a forward P/E of 20.67. We also note that IFNNY has a PEG ratio of 0.87. 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. AVGO currently has a PEG ratio of 1.53.
Another notable valuation metric for IFNNY is its P/B ratio of 3.57. 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, AVGO has a P/B of 16.28.
These metrics, and several others, help IFNNY earn a Value grade of B, while AVGO has been given a Value grade of D.
IFNNY stands above AVGO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IFNNY is the superior value option right now.