AVA vs. OGE: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Investors in the Utility - Electric Power sector should consider Avista (AVA) and OGE Energy (OGE) for potential value opportunities, with a closer examination needed to determine which stock offers better value [1] Group 1: Zacks Rank and Earnings Outlook - Avista has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while OGE Energy has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting that AVA has an improving earnings outlook [3] Group 2: Valuation Metrics - AVA has a forward P/E ratio of 15.04, compared to OGE's forward P/E of 18.09, indicating that AVA may be undervalued relative to OGE [5] - The PEG ratio for AVA is 2.13, while OGE's PEG ratio is 2.59, suggesting AVA has a more favorable growth outlook relative to its valuation [5] - AVA's P/B ratio is 1.27, while OGE's P/B ratio is 1.85, further indicating that AVA is potentially undervalued [6] Group 3: Value Grades - AVA has earned a Value grade of B, while OGE has a Value grade of C, suggesting that AVA is the more attractive option for value investors [6]