We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PCRFY or SONO: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Audio Video Production stocks are likely familiar with Panasonic Corp. and Sonos (SONO - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Panasonic Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Sonos has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PCRFY likely has seen a stronger improvement to its earnings outlook than SONO has recently. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PCRFY currently has a forward P/E ratio of 12.27, while SONO has a forward P/E of 17. We also note that PCRFY has a PEG ratio of 0.51. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SONO currently has a PEG ratio of 4.38.
Another notable valuation metric for PCRFY is its P/B ratio of 0.94. 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, SONO has a P/B of 3.27.
These metrics, and several others, help PCRFY earn a Value grade of A, while SONO has been given a Value grade of D.
PCRFY sticks out from SONO in both our Zacks Rank and Style Scores models, so value investors will likely feel that PCRFY is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PCRFY or SONO: Which Is the Better Value Stock Right Now?
Investors interested in Audio Video Production stocks are likely familiar with Panasonic Corp. and Sonos (SONO - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Panasonic Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Sonos has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PCRFY likely has seen a stronger improvement to its earnings outlook than SONO has recently. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PCRFY currently has a forward P/E ratio of 12.27, while SONO has a forward P/E of 17. We also note that PCRFY has a PEG ratio of 0.51. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SONO currently has a PEG ratio of 4.38.
Another notable valuation metric for PCRFY is its P/B ratio of 0.94. 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, SONO has a P/B of 3.27.
These metrics, and several others, help PCRFY earn a Value grade of A, while SONO has been given a Value grade of D.
PCRFY sticks out from SONO in both our Zacks Rank and Style Scores models, so value investors will likely feel that PCRFY is the better option right now.