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GBX or WAB: Which Is the Better Value Stock Right Now?
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Investors with an interest in Transportation - Equipment and Leasing stocks have likely encountered both Greenbrier Companies (GBX - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Currently, both Greenbrier Companies and Westinghouse Air Brake Technologies are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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 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.
GBX currently has a forward P/E ratio of 11.86, while WAB has a forward P/E of 22.33. We also note that GBX has a PEG ratio of 0.69. 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. WAB currently has a PEG ratio of 1.44.
Another notable valuation metric for GBX is its P/B ratio of 1.07. 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, WAB has a P/B of 2.72.
These metrics, and several others, help GBX earn a Value grade of A, while WAB has been given a Value grade of D.
Both GBX and WAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GBX is the superior value option right now.
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GBX or WAB: Which Is the Better Value Stock Right Now?
Investors with an interest in Transportation - Equipment and Leasing stocks have likely encountered both Greenbrier Companies (GBX - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Currently, both Greenbrier Companies and Westinghouse Air Brake Technologies are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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 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.
GBX currently has a forward P/E ratio of 11.86, while WAB has a forward P/E of 22.33. We also note that GBX has a PEG ratio of 0.69. 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. WAB currently has a PEG ratio of 1.44.
Another notable valuation metric for GBX is its P/B ratio of 1.07. 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, WAB has a P/B of 2.72.
These metrics, and several others, help GBX earn a Value grade of A, while WAB has been given a Value grade of D.
Both GBX and WAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GBX is the superior value option right now.