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RRX or ZWS: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Regal Beloit (RRX - Free Report) or Zurn Water (ZWS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Regal Beloit and Zurn Water are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that RRX likely has seen a stronger improvement to its earnings outlook than ZWS has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
RRX currently has a forward P/E ratio of 14.15, while ZWS has a forward P/E of 28.58. We also note that RRX has a PEG ratio of 1.42. 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. ZWS currently has a PEG ratio of 1.68.
Another notable valuation metric for RRX is its P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZWS has a P/B of 2.80.
These metrics, and several others, help RRX earn a Value grade of B, while ZWS has been given a Value grade of C.
RRX has seen stronger estimate revision activity and sports more attractive valuation metrics than ZWS, so it seems like value investors will conclude that RRX is the superior option right now.
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RRX or ZWS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Regal Beloit (RRX - Free Report) or Zurn Water (ZWS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Regal Beloit and Zurn Water are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that RRX likely has seen a stronger improvement to its earnings outlook than ZWS has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
RRX currently has a forward P/E ratio of 14.15, while ZWS has a forward P/E of 28.58. We also note that RRX has a PEG ratio of 1.42. 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. ZWS currently has a PEG ratio of 1.68.
Another notable valuation metric for RRX is its P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZWS has a P/B of 2.80.
These metrics, and several others, help RRX earn a Value grade of B, while ZWS has been given a Value grade of C.
RRX has seen stronger estimate revision activity and sports more attractive valuation metrics than ZWS, so it seems like value investors will conclude that RRX is the superior option right now.