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PCAR or TSLA: Which Is the Better Value Stock Right Now?
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Investors interested in Automotive - Domestic stocks are likely familiar with Paccar (PCAR - Free Report) and Tesla (TSLA - 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.
Currently, Paccar has a Zacks Rank of #2 (Buy), while Tesla has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that PCAR likely has seen a stronger improvement to its earnings outlook than TSLA has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
PCAR currently has a forward P/E ratio of 10.17, while TSLA has a forward P/E of 73.47. We also note that PCAR has a PEG ratio of 1.02. 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. TSLA currently has a PEG ratio of 3.69.
Another notable valuation metric for PCAR is its P/B ratio of 2.98. 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, TSLA has a P/B of 13.74.
These are just a few of the metrics contributing to PCAR's Value grade of A and TSLA's Value grade of F.
PCAR stands above TSLA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PCAR is the superior value option right now.
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PCAR or TSLA: Which Is the Better Value Stock Right Now?
Investors interested in Automotive - Domestic stocks are likely familiar with Paccar (PCAR - Free Report) and Tesla (TSLA - 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.
Currently, Paccar has a Zacks Rank of #2 (Buy), while Tesla has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that PCAR likely has seen a stronger improvement to its earnings outlook than TSLA has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
PCAR currently has a forward P/E ratio of 10.17, while TSLA has a forward P/E of 73.47. We also note that PCAR has a PEG ratio of 1.02. 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. TSLA currently has a PEG ratio of 3.69.
Another notable valuation metric for PCAR is its P/B ratio of 2.98. 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, TSLA has a P/B of 13.74.
These are just a few of the metrics contributing to PCAR's Value grade of A and TSLA's Value grade of F.
PCAR stands above TSLA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PCAR is the superior value option right now.