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AIMC or IR: Which Is the Better Value Stock Right Now?
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Investors interested in Manufacturing - General Industrial stocks are likely familiar with Altra Industrial Motion and Ingersoll Rand (IR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Altra Industrial Motion has a Zacks Rank of #1 (Strong Buy), while Ingersoll Rand has a Zacks Rank of #2 (Buy) right now. This means that AIMC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AIMC currently has a forward P/E ratio of 16.70, while IR has a forward P/E of 27.65. We also note that AIMC has a PEG ratio of 1.11. 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. IR currently has a PEG ratio of 3.49.
Another notable valuation metric for AIMC is its P/B ratio of 1.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IR has a P/B of 1.38.
Based on these metrics and many more, AIMC holds a Value grade of B, while IR has a Value grade of D.
AIMC 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 AIMC is likely the superior value option right now.
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AIMC or IR: Which Is the Better Value Stock Right Now?
Investors interested in Manufacturing - General Industrial stocks are likely familiar with Altra Industrial Motion and Ingersoll Rand (IR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Altra Industrial Motion has a Zacks Rank of #1 (Strong Buy), while Ingersoll Rand has a Zacks Rank of #2 (Buy) right now. This means that AIMC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AIMC currently has a forward P/E ratio of 16.70, while IR has a forward P/E of 27.65. We also note that AIMC has a PEG ratio of 1.11. 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. IR currently has a PEG ratio of 3.49.
Another notable valuation metric for AIMC is its P/B ratio of 1.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IR has a P/B of 1.38.
Based on these metrics and many more, AIMC holds a Value grade of B, while IR has a Value grade of D.
AIMC 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 AIMC is likely the superior value option right now.