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EVRG vs. CVA: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Alternative Energy - Other stocks have likely encountered both Evergy Inc (EVRG - Free Report) and Covanta . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Evergy Inc has a Zacks Rank of #1 (Strong Buy), while Covanta has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that EVRG likely has seen a stronger improvement to its earnings outlook than CVA has recently. However, value investors will care about much more than just this.

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 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.

EVRG currently has a forward P/E ratio of 19.79, while CVA has a forward P/E of 173.70. We also note that EVRG has a PEG ratio of 2.56. 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. CVA currently has a PEG ratio of 11.58.

Another notable valuation metric for EVRG is its P/B ratio of 1.48. 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, CVA has a P/B of 4.51.

These are just a few of the metrics contributing to EVRG's Value grade of B and CVA's Value grade of C.

EVRG sticks out from CVA in both our Zacks Rank and Style Scores models, so value investors will likely feel that EVRG is the better option right now.


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