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BXP vs. STAG: Which Stock Should Value Investors Buy Now?

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Boston Properties (BXP - Free Report) and Stag Industrial (STAG - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Boston Properties and Stag Industrial are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BXP is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

BXP currently has a forward P/E ratio of 7.43, while STAG has a forward P/E of 15.34. We also note that BXP has a PEG ratio of 4.70. 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. STAG currently has a PEG ratio of 4.89.

Another notable valuation metric for BXP is its P/B ratio of 1.03. 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, STAG has a P/B of 1.80.

These are just a few of the metrics contributing to BXP's Value grade of B and STAG's Value grade of F.

BXP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BXP is likely the superior value option right now.


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