Valuation Metrics

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AES vs. NEE: Which Stock Should Value Investors Buy Now?
ZACKS· 2025-04-01 16:40
Another notable valuation metric for AES is its P/B ratio of 1.15. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NEE has a P/B of 2.41. These are just a few of the metrics contributing to AES's Value grade of A and NEE's Value grade of D. AES stands above NEE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AES is the superior value option right now. Value invest ...
SAN vs. NABZY: Which Stock Is the Better Value Option?
ZACKS· 2025-03-31 16:46
Core Insights - Investors are considering Banco Santander (SAN) and National Australia Bank Ltd. (NABZY) for potential value opportunities in the Banks - Foreign sector [1] Valuation Metrics - Banco Santander has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to National Australia Bank Ltd., which has a Zacks Rank of 3 (Hold) [3] - SAN's forward P/E ratio is 7.72, significantly lower than NABZY's forward P/E of 14.41, suggesting SAN may be undervalued [5] - The PEG ratio for SAN is 0.81, while NABZY's PEG ratio is 7.67, indicating SAN's expected earnings growth is more favorable [5] - SAN's P/B ratio is 0.93, compared to NABZY's P/B of 1.57, further supporting SAN's valuation attractiveness [6] Value Grades - Based on various valuation metrics, SAN holds a Value grade of A, while NABZY has a Value grade of D, indicating SAN is perceived as a better value investment [6][7]
NVO vs. LLY: Which Stock Is the Better Value Option?
ZACKS· 2025-03-17 16:46
Core Insights - The article compares Novo Nordisk (NVO) and Eli Lilly (LLY) to determine which stock is more attractive to value investors [1] Valuation Metrics - NVO has a forward P/E ratio of 19.80, while LLY has a forward P/E of 34.66 [5] - NVO's PEG ratio is 0.82, indicating a better valuation relative to its expected earnings growth compared to LLY's PEG ratio of 1.31 [5] - NVO's P/B ratio is 16.64, significantly lower than LLY's P/B of 54.11, suggesting NVO is more undervalued [6] Earnings Outlook - NVO is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7] - NVO holds a Value grade of B, while LLY has a Value grade of D, indicating NVO is the superior value option at this time [6][7]
Gilead Sciences, Inc. (GILD) Hits Fresh High: Is There Still Room to Run?
ZACKS· 2025-03-05 15:15
Company Performance - Gilead Sciences (GILD) shares have increased by 17.1% over the past month, reaching a new 52-week high of $117.39 [1] - The stock has gained 24.2% since the beginning of the year, outperforming the Zacks Medical sector and the Zacks Medical - Biomedical and Genetics industry, both of which have seen a 6% return [1] Earnings and Revenue Expectations - Gilead has a strong record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - For the current fiscal year, Gilead is expected to report earnings of $7.86 per share on revenues of $28.55 billion, reflecting a 70.13% change in EPS and a -0.7% change in revenues [3] - For the next fiscal year, earnings are projected to be $8.17 per share on revenues of $29.7 billion, indicating a year-over-year change of 3.9% in EPS and 4.01% in revenues [3] Valuation Metrics - Gilead's current valuation metrics show it trades at 14.6X current fiscal year EPS estimates, below the peer industry average of 19.3X [7] - On a trailing cash flow basis, Gilead trades at 16.7X compared to the peer group's average of 15.4X, with a PEG ratio of 0.75 [7] Zacks Rank and Style Scores - Gilead holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, making it a suitable choice for investors [8] - The company has a Value Score of B, Growth Score of B, and Momentum Score of B, resulting in a combined VGM Score of A [6] Industry Comparison - The Medical - Biomedical and Genetics industry is performing well, ranking in the top 30% of all industries, providing favorable conditions for Gilead and its peers [11] - Jazz Pharmaceuticals PLC (JAZZ), a competitor, has a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, with a projected EPS of $23.12 on revenues of $4.3 billion for the current fiscal year [9][10]
FOXA or NFLX: Which Is the Better Value Stock Right Now?
ZACKS· 2025-02-28 17:46
Core Insights - The article compares Fox (FOXA) and Netflix (NFLX) to determine which stock offers better value for investors right now [1] Valuation Metrics - Both FOXA and NFLX currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - FOXA has a forward P/E ratio of 12.87, significantly lower than NFLX's forward P/E of 39.19 [5] - FOXA's PEG ratio is 1.25, while NFLX's PEG ratio stands at 2, suggesting FOXA is more reasonably priced relative to its expected EPS growth [5] - FOXA has a P/B ratio of 2.21, compared to NFLX's P/B ratio of 16.65, indicating FOXA is undervalued relative to its book value [6] - Based on these valuation metrics, FOXA holds a Value grade of B, whereas NFLX has a Value grade of F, suggesting FOXA is the superior value option at this time [6]
GM vs. TSLA: Which Stock Is the Better Value Option?
ZACKS· 2025-02-26 17:45
Core Viewpoint - Investors in the Automotive - Domestic sector should consider General Motors (GM) and Tesla (TSLA) for potential value opportunities, with GM currently appearing to offer better value based on various metrics [1]. Valuation Metrics - GM has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to TSLA, which has a Zacks Rank of 3 (Hold) [3]. - GM's forward P/E ratio is significantly lower at 4.08, while TSLA's forward P/E is 102.62, suggesting GM is undervalued relative to TSLA [5]. - GM's PEG ratio is 0.65, indicating better value when considering expected earnings growth, whereas TSLA's PEG ratio is 4.34 [5]. - GM's P/B ratio stands at 0.71, compared to TSLA's P/B of 13.23, further highlighting GM's relative undervaluation [6]. - These metrics contribute to GM's Value grade of A and TSLA's Value grade of F, reinforcing GM's position as a superior value option [6][7]. Earnings Outlook - GM is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7].