ZBH or ESLOY: Which Is the Better Value Stock Right Now?

Core Viewpoint - Zimmer Biomet (ZBH) is currently viewed as a better value opportunity compared to EssilorLuxottica Unsponsored ADR (ESLOY) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - ZBH has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ESLOY has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting that ZBH has an improving earnings outlook [3]. Group 2: Valuation Metrics - ZBH has a forward P/E ratio of 12.80, significantly lower than ESLOY's forward P/E of 38.31, indicating that ZBH may be undervalued [5]. - The PEG ratio for ZBH is 2.40, while ESLOY's PEG ratio is 4.98, further suggesting that ZBH offers better value considering expected earnings growth [5]. - ZBH's P/B ratio is 1.65, compared to ESLOY's P/B of 3.22, reinforcing the notion that ZBH is more attractively valued [6]. Group 3: Value Grades - ZBH has earned a Value grade of A, while ESLOY has a Value grade of D, highlighting the relative attractiveness of ZBH as a value investment [6]. - Stronger estimate revision activity and more favorable valuation metrics for ZBH lead to the conclusion that it is the superior option for value investors at this time [7].