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GM vs. FOXF: Which Stock Is the Better Value Option?
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Investors with an interest in Automotive - Domestic stocks have likely encountered both General Motors (GM - Free Report) and 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.
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.
General Motors and Fox Factory Holding are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. 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 factor that value investors are interested in.
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.
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 4.17, while FOXF has a forward P/E of 17.27. We also note that GM has a PEG ratio of 0.42. 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. FOXF currently has a PEG ratio of 1.76.
Another notable valuation metric for GM is its P/B ratio of 0.64. 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, FOXF has a P/B of 1.44.
Based on these metrics and many more, GM holds a Value grade of A, while FOXF has a Value grade of C.
GM has seen stronger estimate revision activity and sports more attractive valuation metrics than FOXF, so it seems like value investors will conclude that GM is the superior option right now.
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GM vs. FOXF: Which Stock Is the Better Value Option?
Investors with an interest in Automotive - Domestic stocks have likely encountered both General Motors (GM - Free Report) and 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.
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.
General Motors and Fox Factory Holding are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. 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 factor that value investors are interested in.
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.
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 4.17, while FOXF has a forward P/E of 17.27. We also note that GM has a PEG ratio of 0.42. 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. FOXF currently has a PEG ratio of 1.76.
Another notable valuation metric for GM is its P/B ratio of 0.64. 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, FOXF has a P/B of 1.44.
Based on these metrics and many more, GM holds a Value grade of A, while FOXF has a Value grade of C.
GM has seen stronger estimate revision activity and sports more attractive valuation metrics than FOXF, so it seems like value investors will conclude that GM is the superior option right now.