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HAYW vs. HOCPY: Which Stock Is the Better Value Option?
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Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Hayward Holdings, Inc. (HAYW - Free Report) and Hoya Corp. (HOCPY - 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, Hayward Holdings, Inc. is sporting a Zacks Rank of #2 (Buy), while Hoya Corp. 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 HAYW 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.
HAYW currently has a forward P/E ratio of 22.91, while HOCPY has a forward P/E of 37.77. We also note that HAYW has a PEG ratio of 2.22. 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. HOCPY currently has a PEG ratio of 3.30.
Another notable valuation metric for HAYW is its P/B ratio of 2.23. 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, HOCPY has a P/B of 7.97.
These are just a few of the metrics contributing to HAYW's Value grade of B and HOCPY's Value grade of F.
HAYW stands above HOCPY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HAYW is the superior value option right now.
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HAYW vs. HOCPY: Which Stock Is the Better Value Option?
Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Hayward Holdings, Inc. (HAYW - Free Report) and Hoya Corp. (HOCPY - 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, Hayward Holdings, Inc. is sporting a Zacks Rank of #2 (Buy), while Hoya Corp. 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 HAYW 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.
HAYW currently has a forward P/E ratio of 22.91, while HOCPY has a forward P/E of 37.77. We also note that HAYW has a PEG ratio of 2.22. 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. HOCPY currently has a PEG ratio of 3.30.
Another notable valuation metric for HAYW is its P/B ratio of 2.23. 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, HOCPY has a P/B of 7.97.
These are just a few of the metrics contributing to HAYW's Value grade of B and HOCPY's Value grade of F.
HAYW stands above HOCPY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HAYW is the superior value option right now.