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PDD or MMM: Which Is the Better Value Stock Right Now?
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Investors interested in Diversified Operations stocks are likely familiar with PDD Holdings Inc. Sponsored ADR (PDD - Free Report) and 3M (MMM - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, PDD Holdings Inc. Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while 3M 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 PDD has an improving earnings outlook. However, value investors will care about much more than just this.
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 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.
PDD currently has a forward P/E ratio of 11.21, while MMM has a forward P/E of 17.25. We also note that PDD has a PEG ratio of 0.22. 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. MMM currently has a PEG ratio of 2.30.
Another notable valuation metric for PDD is its P/B ratio of 6.27. 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, MMM has a P/B of 17.10.
These are just a few of the metrics contributing to PDD's Value grade of B and MMM's Value grade of D.
PDD stands above MMM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PDD is the superior value option right now.
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PDD or MMM: Which Is the Better Value Stock Right Now?
Investors interested in Diversified Operations stocks are likely familiar with PDD Holdings Inc. Sponsored ADR (PDD - Free Report) and 3M (MMM - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, PDD Holdings Inc. Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while 3M 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 PDD has an improving earnings outlook. However, value investors will care about much more than just this.
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 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.
PDD currently has a forward P/E ratio of 11.21, while MMM has a forward P/E of 17.25. We also note that PDD has a PEG ratio of 0.22. 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. MMM currently has a PEG ratio of 2.30.
Another notable valuation metric for PDD is its P/B ratio of 6.27. 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, MMM has a P/B of 17.10.
These are just a few of the metrics contributing to PDD's Value grade of B and MMM's Value grade of D.
PDD stands above MMM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PDD is the superior value option right now.