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NCLH vs. LYV: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Norwegian Cruise Line (NCLH - Free Report) and Live Nation (LYV - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Norwegian Cruise Line has a Zacks Rank of #1 (Strong Buy), while Live Nation has a Zacks Rank of #5 (Strong Sell). This means that NCLH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
NCLH currently has a forward P/E ratio of 12.53, while LYV has a forward P/E of 58.11. We also note that NCLH has a PEG ratio of 0.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LYV currently has a PEG ratio of 1.92.
Another notable valuation metric for NCLH is its P/B ratio of 18.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, LYV has a P/B of 46.69.
These metrics, and several others, help NCLH earn a Value grade of A, while LYV has been given a Value grade of C.
NCLH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NCLH is likely the superior value option right now.
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NCLH vs. LYV: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Norwegian Cruise Line (NCLH - Free Report) and Live Nation (LYV - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Norwegian Cruise Line has a Zacks Rank of #1 (Strong Buy), while Live Nation has a Zacks Rank of #5 (Strong Sell). This means that NCLH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
NCLH currently has a forward P/E ratio of 12.53, while LYV has a forward P/E of 58.11. We also note that NCLH has a PEG ratio of 0.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LYV currently has a PEG ratio of 1.92.
Another notable valuation metric for NCLH is its P/B ratio of 18.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, LYV has a P/B of 46.69.
These metrics, and several others, help NCLH earn a Value grade of A, while LYV has been given a Value grade of C.
NCLH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NCLH is likely the superior value option right now.