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VLVLY or MOD: Which Is the Better Value Stock Right Now?
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Investors interested in Automotive - Original Equipment stocks are likely familiar with AB Volvo (VLVLY - Free Report) and Modine (MOD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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, AB Volvo has a Zacks Rank of #2 (Buy), while Modine has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VLVLY 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.
VLVLY currently has a forward P/E ratio of 10.56, while MOD has a forward P/E of 31.89. We also note that VLVLY has a PEG ratio of 0.63. 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. MOD currently has a PEG ratio of 0.94.
Another notable valuation metric for VLVLY is its P/B ratio of 3.36. 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, MOD has a P/B of 8.16.
Based on these metrics and many more, VLVLY holds a Value grade of A, while MOD has a Value grade of C.
VLVLY has seen stronger estimate revision activity and sports more attractive valuation metrics than MOD, so it seems like value investors will conclude that VLVLY is the superior option right now.
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VLVLY or MOD: Which Is the Better Value Stock Right Now?
Investors interested in Automotive - Original Equipment stocks are likely familiar with AB Volvo (VLVLY - Free Report) and Modine (MOD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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, AB Volvo has a Zacks Rank of #2 (Buy), while Modine has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VLVLY 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.
VLVLY currently has a forward P/E ratio of 10.56, while MOD has a forward P/E of 31.89. We also note that VLVLY has a PEG ratio of 0.63. 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. MOD currently has a PEG ratio of 0.94.
Another notable valuation metric for VLVLY is its P/B ratio of 3.36. 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, MOD has a P/B of 8.16.
Based on these metrics and many more, VLVLY holds a Value grade of A, while MOD has a Value grade of C.
VLVLY has seen stronger estimate revision activity and sports more attractive valuation metrics than MOD, so it seems like value investors will conclude that VLVLY is the superior option right now.