PBH vs. ABT: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Prestige Consumer Healthcare (PBH) is currently viewed as a more attractive investment option compared to Abbott (ABT) for those seeking undervalued stocks in the Medical - Products sector [1]. Group 1: Company Rankings and Outlook - PBH has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ABT has a Zacks Rank of 4 (Sell) [3]. - The earnings outlook for PBH has likely improved more significantly than that of ABT recently [3]. Group 2: Valuation Metrics - PBH has a forward P/E ratio of 13.54, significantly lower than ABT's forward P/E of 24.64 [5]. - The PEG ratio for PBH is 1.93, while ABT's PEG ratio stands at 2.31, suggesting PBH may offer better value considering expected earnings growth [5]. - PBH's P/B ratio is 1.66, compared to ABT's P/B of 4.3, further indicating PBH's relative undervaluation [6]. Group 3: Value Grades - Based on various valuation metrics, PBH holds a Value grade of A, while ABT has a Value grade of C, reinforcing PBH's position as the superior value option [6].