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J or TT: Which Is the Better Value Stock Right Now?
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Investors with an interest in Technology Services stocks have likely encountered both Jacobs Solutions (J - Free Report) and Trane Technologies (TT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Jacobs Solutions and Trane Technologies are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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.
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.
J currently has a forward P/E ratio of 16.75, while TT has a forward P/E of 23.08. We also note that J has a PEG ratio of 1.65. 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. TT currently has a PEG ratio of 1.80.
Another notable valuation metric for J is its P/B ratio of 2.65. 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, TT has a P/B of 7.45.
These are just a few of the metrics contributing to J's Value grade of B and TT's Value grade of C.
Both J and TT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that J is the superior value option right now.
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J or TT: Which Is the Better Value Stock Right Now?
Investors with an interest in Technology Services stocks have likely encountered both Jacobs Solutions (J - Free Report) and Trane Technologies (TT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Jacobs Solutions and Trane Technologies are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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.
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.
J currently has a forward P/E ratio of 16.75, while TT has a forward P/E of 23.08. We also note that J has a PEG ratio of 1.65. 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. TT currently has a PEG ratio of 1.80.
Another notable valuation metric for J is its P/B ratio of 2.65. 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, TT has a P/B of 7.45.
These are just a few of the metrics contributing to J's Value grade of B and TT's Value grade of C.
Both J and TT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that J is the superior value option right now.