AVNT vs. APD: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The analysis compares Avient (AVNT) and Air Products and Chemicals (APD) to determine which stock represents a better value opportunity for investors interested in the Chemical - Diversified sector [1]. Group 1: Zacks Rank and Earnings Estimates - Avient currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Air Products and Chemicals has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, which positions AVNT as having a more favorable earnings outlook compared to APD [3]. Group 2: Valuation Metrics - Avient has a forward P/E ratio of 12.40, significantly lower than Air Products and Chemicals' forward P/E of 20.37, indicating that AVNT may be undervalued relative to APD [5]. - The PEG ratio for Avient is 1.25, while for Air Products and Chemicals, it is 2.60, suggesting that AVNT is expected to grow earnings at a more favorable rate relative to its price [5]. - Avient's P/B ratio stands at 1.44, compared to APD's P/B of 3.39, further indicating that AVNT is trading at a lower valuation relative to its book value [6]. - Based on these valuation metrics, Avient holds a Value grade of A, while Air Products and Chemicals has a Value grade of C, reinforcing the view that AVNT is the better investment option at this time [6].