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HCMLY or KNF: Which Is the Better Value Stock Right Now?
ZACKSยท2025-04-03 16:40

Core Viewpoint - Holcim Ltd Unsponsored ADR (HCMLY) is currently viewed as a better value opportunity compared to Knife River (KNF) based on various financial metrics and rankings [1][3]. Group 1: Zacks Rank and Earnings Outlook - Holcim Ltd has a Zacks Rank of 2 (Buy), indicating a strong earnings outlook, while Knife River has a Zacks Rank of 4 (Sell) [3]. - The improvement in earnings outlook for HCMLY is stronger than that of KNF, making it more appealing for value investors [3]. Group 2: Valuation Metrics - HCMLY has a forward P/E ratio of 15.22, significantly lower than KNF's forward P/E of 23.57, suggesting that HCMLY is undervalued relative to KNF [5]. - The PEG ratio for HCMLY is 2.20, while KNF's PEG ratio is slightly higher at 2.26, indicating that HCMLY may offer better value considering its expected earnings growth [5]. - HCMLY's P/B ratio stands at 1.97, compared to KNF's P/B of 3.65, further supporting the argument that HCMLY is the superior value option [6]. Group 3: Value Grades - Based on the analysis of various valuation metrics, HCMLY holds a Value grade of B, while KNF has a Value grade of C, reinforcing HCMLY's position as the better value investment [6].