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DAKT vs. KLAC: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Daktronics (DAKT - Free Report) and KLA (KLAC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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, Daktronics is sporting a Zacks Rank of #1 (Strong Buy), while KLA 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 DAKT 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
DAKT currently has a forward P/E ratio of 13.39, while KLAC has a forward P/E of 27.45. We also note that DAKT has a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KLAC currently has a PEG ratio of 1.59.
Another notable valuation metric for DAKT is its P/B ratio of 2.93. 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, KLAC has a P/B of 31.92.
These are just a few of the metrics contributing to DAKT's Value grade of A and KLAC's Value grade of D.
DAKT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DAKT is likely the superior value option right now.
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DAKT vs. KLAC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Daktronics (DAKT - Free Report) and KLA (KLAC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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, Daktronics is sporting a Zacks Rank of #1 (Strong Buy), while KLA 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 DAKT 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
DAKT currently has a forward P/E ratio of 13.39, while KLAC has a forward P/E of 27.45. We also note that DAKT has a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KLAC currently has a PEG ratio of 1.59.
Another notable valuation metric for DAKT is its P/B ratio of 2.93. 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, KLAC has a P/B of 31.92.
These are just a few of the metrics contributing to DAKT's Value grade of A and KLAC's Value grade of D.
DAKT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DAKT is likely the superior value option right now.