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PSN 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 Parsons (PSN - Free Report) and Trane Technologies (TT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Parsons has a Zacks Rank of #2 (Buy), while Trane Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PSN likely has seen a stronger improvement to its earnings outlook than TT has recently. But this is only part of the picture for value investors.
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.
PSN currently has a forward P/E ratio of 22.92, while TT has a forward P/E of 24.03. We also note that PSN has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TT currently has a PEG ratio of 1.87.
Another notable valuation metric for PSN is its P/B ratio of 2.87. 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, TT has a P/B of 8.14.
These are just a few of the metrics contributing to PSN's Value grade of B and TT's Value grade of C.
PSN has seen stronger estimate revision activity and sports more attractive valuation metrics than TT, so it seems like value investors will conclude that PSN is the superior option right now.
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PSN or TT: Which Is the Better Value Stock Right Now?
Investors with an interest in Technology Services stocks have likely encountered both Parsons (PSN - Free Report) and Trane Technologies (TT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Parsons has a Zacks Rank of #2 (Buy), while Trane Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PSN likely has seen a stronger improvement to its earnings outlook than TT has recently. But this is only part of the picture for value investors.
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.
PSN currently has a forward P/E ratio of 22.92, while TT has a forward P/E of 24.03. We also note that PSN has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TT currently has a PEG ratio of 1.87.
Another notable valuation metric for PSN is its P/B ratio of 2.87. 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, TT has a P/B of 8.14.
These are just a few of the metrics contributing to PSN's Value grade of B and TT's Value grade of C.
PSN has seen stronger estimate revision activity and sports more attractive valuation metrics than TT, so it seems like value investors will conclude that PSN is the superior option right now.