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GM or FOXF: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Automotive - Domestic sector might want to consider either General Motors (GM - Free Report) or Fox Factory Holding (FOXF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, General Motors is sporting a Zacks Rank of #1 (Strong Buy), while Fox Factory Holding has a Zacks Rank of #3 (Hold). This means that GM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GM currently has a forward P/E ratio of 5.27, while FOXF has a forward P/E of 20.58. We also note that GM has a PEG ratio of 0.52. 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. FOXF currently has a PEG ratio of 2.10.
Another notable valuation metric for GM is its P/B ratio of 0.80. 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, FOXF has a P/B of 1.73.
Based on these metrics and many more, GM holds a Value grade of A, while FOXF has a Value grade of C.
GM sticks out from FOXF in both our Zacks Rank and Style Scores models, so value investors will likely feel that GM is the better option right now.
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GM or FOXF: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Automotive - Domestic sector might want to consider either General Motors (GM - Free Report) or Fox Factory Holding (FOXF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, General Motors is sporting a Zacks Rank of #1 (Strong Buy), while Fox Factory Holding has a Zacks Rank of #3 (Hold). This means that GM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GM currently has a forward P/E ratio of 5.27, while FOXF has a forward P/E of 20.58. We also note that GM has a PEG ratio of 0.52. 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. FOXF currently has a PEG ratio of 2.10.
Another notable valuation metric for GM is its P/B ratio of 0.80. 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, FOXF has a P/B of 1.73.
Based on these metrics and many more, GM holds a Value grade of A, while FOXF has a Value grade of C.
GM sticks out from FOXF in both our Zacks Rank and Style Scores models, so value investors will likely feel that GM is the better option right now.