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TFC or PNC: Which Is the Better Value Stock Right Now?
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Investors with an interest in Banks - Major Regional stocks have likely encountered both Truist Financial Corporation (TFC - Free Report) and The PNC Financial Services Group, Inc (PNC - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Truist Financial Corporation and The PNC Financial Services Group, Inc are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
TFC currently has a forward P/E ratio of 12.47, while PNC has a forward P/E of 13.93. We also note that TFC has a PEG ratio of 2.08. 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. PNC currently has a PEG ratio of 2.33.
Another notable valuation metric for TFC is its P/B ratio of 1.04. 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, PNC has a P/B of 1.37.
These are just a few of the metrics contributing to TFC's Value grade of B and PNC's Value grade of C.
Both TFC and PNC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TFC is the superior value option right now.
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TFC or PNC: Which Is the Better Value Stock Right Now?
Investors with an interest in Banks - Major Regional stocks have likely encountered both Truist Financial Corporation (TFC - Free Report) and The PNC Financial Services Group, Inc (PNC - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Truist Financial Corporation and The PNC Financial Services Group, Inc are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
TFC currently has a forward P/E ratio of 12.47, while PNC has a forward P/E of 13.93. We also note that TFC has a PEG ratio of 2.08. 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. PNC currently has a PEG ratio of 2.33.
Another notable valuation metric for TFC is its P/B ratio of 1.04. 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, PNC has a P/B of 1.37.
These are just a few of the metrics contributing to TFC's Value grade of B and PNC's Value grade of C.
Both TFC and PNC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TFC is the superior value option right now.