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CARR or KLAC: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Carrier Global (CARR - Free Report) or KLA (KLAC - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Carrier Global and KLA are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CARR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
CARR currently has a forward P/E ratio of 21.51, while KLAC has a forward P/E of 23.18. We also note that CARR has a PEG ratio of 2.21. 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. KLAC currently has a PEG ratio of 2.46.
Another notable valuation metric for CARR is its P/B ratio of 5.70. 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, KLAC has a P/B of 24.
Based on these metrics and many more, CARR holds a Value grade of B, while KLAC has a Value grade of C.
CARR sticks out from KLAC in both our Zacks Rank and Style Scores models, so value investors will likely feel that CARR is the better option right now.
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CARR or KLAC: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Carrier Global (CARR - Free Report) or KLA (KLAC - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Carrier Global and KLA are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CARR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
CARR currently has a forward P/E ratio of 21.51, while KLAC has a forward P/E of 23.18. We also note that CARR has a PEG ratio of 2.21. 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. KLAC currently has a PEG ratio of 2.46.
Another notable valuation metric for CARR is its P/B ratio of 5.70. 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, KLAC has a P/B of 24.
Based on these metrics and many more, CARR holds a Value grade of B, while KLAC has a Value grade of C.
CARR sticks out from KLAC in both our Zacks Rank and Style Scores models, so value investors will likely feel that CARR is the better option right now.