Core Insights - The article compares two stocks in the Manufacturing - Tools & Related Products sector: AB SKF (SKFRY) and Core & Main (CNM) to determine which is more attractive to value investors [1] - A strong Zacks Rank combined with a favorable Value grade is identified as an effective method for discovering value opportunities [2] Zacks Rank Comparison - AB SKF has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Core & Main has a Zacks Rank of 5 (Strong Sell) [3] Valuation Metrics - SKFRY has a forward P/E ratio of 18.06, compared to CNM's forward P/E of 23.08, suggesting SKFRY is more undervalued [5] - The PEG ratio for SKFRY is 1.62, while CNM's PEG ratio is 2.03, indicating SKFRY's earnings growth is more favorably priced [5] - SKFRY's P/B ratio is 1.97, significantly lower than CNM's P/B of 5.21, further supporting SKFRY's valuation attractiveness [6] Value Grades - SKFRY has a Value grade of B, while CNM has a Value grade of D, reinforcing the conclusion that SKFRY is the better option for value investors [6]
SKFRY vs. CNM: Which Stock Is the Better Value Option?