LHX or EADSY: Which Is the Better Value Stock Right Now?

Core Viewpoint - L3Harris (LHX) is currently viewed as a better value opportunity compared to Airbus Group (EADSY) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - L3Harris has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Airbus Group has a Zacks Rank of 4 (Sell) [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that LHX is likely experiencing an improvement in its earnings outlook [3]. Group 2: Valuation Metrics - LHX has a forward P/E ratio of 16.96, significantly lower than EADSY's forward P/E of 29.89 [5]. - The PEG ratio for LHX is 1.85, while EADSY's PEG ratio is 3.26, indicating that LHX is expected to grow earnings at a more favorable rate relative to its price [5]. - LHX's P/B ratio stands at 2.21, compared to EADSY's P/B of 6.82, further highlighting LHX's relative undervaluation [6]. Group 3: Overall Value Assessment - Based on the solid earnings outlook and favorable valuation figures, LHX is assessed as the superior value option compared to EADSY [7].