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TXT or EADSY: Which Is the Better Value Stock Right Now?
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Investors interested in Aerospace - Defense stocks are likely familiar with Textron (TXT - Free Report) and Airbus Group (EADSY - 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.
Textron has a Zacks Rank of #1 (Strong Buy), while Airbus Group has a Zacks Rank of #3 (Hold) right now. This means that TXT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TXT currently has a forward P/E ratio of 14.42, while EADSY has a forward P/E of 23.25. We also note that TXT has a PEG ratio of 1.23. 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. EADSY currently has a PEG ratio of 1.88.
Another notable valuation metric for TXT is its P/B ratio of 2.49. 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, EADSY has a P/B of 7.84.
These are just a few of the metrics contributing to TXT's Value grade of B and EADSY's Value grade of C.
TXT has seen stronger estimate revision activity and sports more attractive valuation metrics than EADSY, so it seems like value investors will conclude that TXT is the superior option right now.
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TXT or EADSY: Which Is the Better Value Stock Right Now?
Investors interested in Aerospace - Defense stocks are likely familiar with Textron (TXT - Free Report) and Airbus Group (EADSY - 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.
Textron has a Zacks Rank of #1 (Strong Buy), while Airbus Group has a Zacks Rank of #3 (Hold) right now. This means that TXT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TXT currently has a forward P/E ratio of 14.42, while EADSY has a forward P/E of 23.25. We also note that TXT has a PEG ratio of 1.23. 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. EADSY currently has a PEG ratio of 1.88.
Another notable valuation metric for TXT is its P/B ratio of 2.49. 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, EADSY has a P/B of 7.84.
These are just a few of the metrics contributing to TXT's Value grade of B and EADSY's Value grade of C.
TXT has seen stronger estimate revision activity and sports more attractive valuation metrics than EADSY, so it seems like value investors will conclude that TXT is the superior option right now.