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ZBH or PODD: 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 Zimmer Biomet (ZBH - 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.
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 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.
Right now, Zimmer Biomet is sporting a Zacks Rank of #2 (Buy), while Insulet has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ZBH has an improving earnings outlook. But this is only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ZBH currently has a forward P/E ratio of 19.15, while PODD has a forward P/E of 202.47. We also note that ZBH has a PEG ratio of 2.60. 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 5.77.
Another notable valuation metric for ZBH is its P/B ratio of 2.45. 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 38.65.
Based on these metrics and many more, ZBH holds a Value grade of B, while PODD has a Value grade of D.
ZBH has seen stronger estimate revision activity and sports more attractive valuation metrics than PODD, so it seems like value investors will conclude that ZBH is the superior option right now.
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ZBH or PODD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Products sector have probably already heard of Zimmer Biomet (ZBH - 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.
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 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.
Right now, Zimmer Biomet is sporting a Zacks Rank of #2 (Buy), while Insulet has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ZBH has an improving earnings outlook. But this is only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ZBH currently has a forward P/E ratio of 19.15, while PODD has a forward P/E of 202.47. We also note that ZBH has a PEG ratio of 2.60. 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 5.77.
Another notable valuation metric for ZBH is its P/B ratio of 2.45. 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 38.65.
Based on these metrics and many more, ZBH holds a Value grade of B, while PODD has a Value grade of D.
ZBH has seen stronger estimate revision activity and sports more attractive valuation metrics than PODD, so it seems like value investors will conclude that ZBH is the superior option right now.