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.
FSLR or ENPH: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors with an interest in Solar stocks have likely encountered both First Solar (FSLR - Free Report) and Enphase Energy (ENPH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
First Solar and Enphase Energy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that FSLR'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.
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.
FSLR currently has a forward P/E ratio of 16.22, while ENPH has a forward P/E of 40.96. We also note that FSLR has a PEG ratio of 0.29. 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. ENPH currently has a PEG ratio of 2.41.
Another notable valuation metric for FSLR is its P/B ratio of 3.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ENPH has a P/B of 17.13.
These metrics, and several others, help FSLR earn a Value grade of B, while ENPH has been given a Value grade of D.
FSLR has seen stronger estimate revision activity and sports more attractive valuation metrics than ENPH, so it seems like value investors will conclude that FSLR 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
FSLR or ENPH: Which Is the Better Value Stock Right Now?
Investors with an interest in Solar stocks have likely encountered both First Solar (FSLR - Free Report) and Enphase Energy (ENPH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
First Solar and Enphase Energy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that FSLR'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.
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.
FSLR currently has a forward P/E ratio of 16.22, while ENPH has a forward P/E of 40.96. We also note that FSLR has a PEG ratio of 0.29. 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. ENPH currently has a PEG ratio of 2.41.
Another notable valuation metric for FSLR is its P/B ratio of 3.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ENPH has a P/B of 17.13.
These metrics, and several others, help FSLR earn a Value grade of B, while ENPH has been given a Value grade of D.
FSLR has seen stronger estimate revision activity and sports more attractive valuation metrics than ENPH, so it seems like value investors will conclude that FSLR is the superior option right now.