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LDOS or NOC: Which Is the Better Value Stock Right Now?
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Investors interested in Aerospace - Defense stocks are likely familiar with Leidos (LDOS - Free Report) and Northrop Grumman (NOC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Leidos and Northrop Grumman are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
LDOS currently has a forward P/E ratio of 16.22, while NOC has a forward P/E of 18.39. We also note that LDOS has a PEG ratio of 2. 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. NOC currently has a PEG ratio of 6.03.
Another notable valuation metric for LDOS is its P/B ratio of 3.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NOC has a P/B of 4.60.
Based on these metrics and many more, LDOS holds a Value grade of B, while NOC has a Value grade of C.
Both LDOS and NOC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LDOS is the superior value option right now.
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LDOS or NOC: Which Is the Better Value Stock Right Now?
Investors interested in Aerospace - Defense stocks are likely familiar with Leidos (LDOS - Free Report) and Northrop Grumman (NOC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Leidos and Northrop Grumman are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
LDOS currently has a forward P/E ratio of 16.22, while NOC has a forward P/E of 18.39. We also note that LDOS has a PEG ratio of 2. 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. NOC currently has a PEG ratio of 6.03.
Another notable valuation metric for LDOS is its P/B ratio of 3.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NOC has a P/B of 4.60.
Based on these metrics and many more, LDOS holds a Value grade of B, while NOC has a Value grade of C.
Both LDOS and NOC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LDOS is the superior value option right now.