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CBT or AIQUY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Chemical - Diversified sector might want to consider either Cabot (CBT - Free Report) or Air Liquide (AIQUY - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Cabot and Air Liquide are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle 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.
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.
CBT currently has a forward P/E ratio of 12.54, while AIQUY has a forward P/E of 28.16. We also note that CBT has a PEG ratio of 2.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AIQUY currently has a PEG ratio of 3.17.
Another notable valuation metric for CBT is its P/B ratio of 3.28. 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, AIQUY has a P/B of 3.83.
These are just a few of the metrics contributing to CBT's Value grade of A and AIQUY's Value grade of C.
Both CBT and AIQUY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBT is the superior value option right now.
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CBT or AIQUY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Chemical - Diversified sector might want to consider either Cabot (CBT - Free Report) or Air Liquide (AIQUY - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Cabot and Air Liquide are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle 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.
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.
CBT currently has a forward P/E ratio of 12.54, while AIQUY has a forward P/E of 28.16. We also note that CBT has a PEG ratio of 2.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AIQUY currently has a PEG ratio of 3.17.
Another notable valuation metric for CBT is its P/B ratio of 3.28. 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, AIQUY has a P/B of 3.83.
These are just a few of the metrics contributing to CBT's Value grade of A and AIQUY's Value grade of C.
Both CBT and AIQUY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBT is the superior value option right now.