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.
HOLX or SONVY: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Medical - Instruments sector have probably already heard of Hologic (HOLX - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Hologic and SONOVA HOLDING are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that HOLX'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 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.
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.
HOLX currently has a forward P/E ratio of 19.27, while SONVY has a forward P/E of 25.51. We also note that HOLX has a PEG ratio of 2.62. 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. SONVY currently has a PEG ratio of 2.92.
Another notable valuation metric for HOLX is its P/B ratio of 3.79. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SONVY has a P/B of 7.67.
These are just a few of the metrics contributing to HOLX's Value grade of B and SONVY's Value grade of C.
HOLX sticks out from SONVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that HOLX is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HOLX or SONVY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Instruments sector have probably already heard of Hologic (HOLX - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Hologic and SONOVA HOLDING are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that HOLX'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 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.
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.
HOLX currently has a forward P/E ratio of 19.27, while SONVY has a forward P/E of 25.51. We also note that HOLX has a PEG ratio of 2.62. 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. SONVY currently has a PEG ratio of 2.92.
Another notable valuation metric for HOLX is its P/B ratio of 3.79. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SONVY has a P/B of 7.67.
These are just a few of the metrics contributing to HOLX's Value grade of B and SONVY's Value grade of C.
HOLX sticks out from SONVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that HOLX is the better option right now.