We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HCMLY or JHX: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Holcim Ltd Unsponsored ADR (HCMLY - Free Report) and James Hardie (JHX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Holcim Ltd Unsponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while James Hardie has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HCMLY has an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HCMLY currently has a forward P/E ratio of 13.24, while JHX has a forward P/E of 21.86. We also note that HCMLY has a PEG ratio of 1.66. 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. JHX currently has a PEG ratio of 1.70.
Another notable valuation metric for HCMLY is its P/B ratio of 1.65. 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, JHX has a P/B of 8.29.
These are just a few of the metrics contributing to HCMLY's Value grade of B and JHX's Value grade of C.
HCMLY has seen stronger estimate revision activity and sports more attractive valuation metrics than JHX, so it seems like value investors will conclude that HCMLY is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HCMLY or JHX: Which Is the Better Value Stock Right Now?
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Holcim Ltd Unsponsored ADR (HCMLY - Free Report) and James Hardie (JHX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Holcim Ltd Unsponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while James Hardie has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HCMLY has an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HCMLY currently has a forward P/E ratio of 13.24, while JHX has a forward P/E of 21.86. We also note that HCMLY has a PEG ratio of 1.66. 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. JHX currently has a PEG ratio of 1.70.
Another notable valuation metric for HCMLY is its P/B ratio of 1.65. 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, JHX has a P/B of 8.29.
These are just a few of the metrics contributing to HCMLY's Value grade of B and JHX's Value grade of C.
HCMLY has seen stronger estimate revision activity and sports more attractive valuation metrics than JHX, so it seems like value investors will conclude that HCMLY is the superior option right now.