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CARR vs. KLAC: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Carrier Global (CARR - Free Report) and KLA (KLAC - 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 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. Investors should feel comfortable knowing that CARR likely has seen a stronger improvement to its earnings outlook than KLAC has recently. But this is just one piece of the puzzle for value investors.
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 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.
CARR currently has a forward P/E ratio of 20.03, while KLAC has a forward P/E of 20.21. We also note that CARR has a PEG ratio of 2.06. 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. KLAC currently has a PEG ratio of 2.14.
Another notable valuation metric for CARR is its P/B ratio of 5.31. 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 20.93.
These metrics, and several others, help CARR earn a Value grade of B, while KLAC has been given 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 vs. KLAC: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Carrier Global (CARR - Free Report) and KLA (KLAC - 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 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. Investors should feel comfortable knowing that CARR likely has seen a stronger improvement to its earnings outlook than KLAC has recently. But this is just one piece of the puzzle for value investors.
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 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.
CARR currently has a forward P/E ratio of 20.03, while KLAC has a forward P/E of 20.21. We also note that CARR has a PEG ratio of 2.06. 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. KLAC currently has a PEG ratio of 2.14.
Another notable valuation metric for CARR is its P/B ratio of 5.31. 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 20.93.
These metrics, and several others, help CARR earn a Value grade of B, while KLAC has been given 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.