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PCAR vs. TSLA: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Automotive - Domestic sector might want to consider either Paccar (PCAR - Free Report) or Tesla (TSLA - 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.
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 only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
PCAR currently has a forward P/E ratio of 10.45, while TSLA has a forward P/E of 75.39. We also note that PCAR has a PEG ratio of 1.04. 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 3.77.
Another notable valuation metric for PCAR is its P/B ratio of 3.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TSLA has a P/B of 14.
These are just a few of the metrics contributing to PCAR's Value grade of A and TSLA's Value grade of F.
PCAR has seen stronger estimate revision activity and sports more attractive valuation metrics than TSLA, so it seems like value investors will conclude that PCAR is the superior option right now.
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PCAR vs. TSLA: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Automotive - Domestic sector might want to consider either Paccar (PCAR - Free Report) or Tesla (TSLA - 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.
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 only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
PCAR currently has a forward P/E ratio of 10.45, while TSLA has a forward P/E of 75.39. We also note that PCAR has a PEG ratio of 1.04. 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 3.77.
Another notable valuation metric for PCAR is its P/B ratio of 3.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TSLA has a P/B of 14.
These are just a few of the metrics contributing to PCAR's Value grade of A and TSLA's Value grade of F.
PCAR has seen stronger estimate revision activity and sports more attractive valuation metrics than TSLA, so it seems like value investors will conclude that PCAR is the superior option right now.