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RHHBY or ABBV: Which Is the Better Value Stock Right Now? September 17, 2024
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Investors interested in Large Cap Pharmaceuticals stocks are likely familiar with Roche Holding AG (RHHBY - Free Report) and AbbVie (ABBV - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Roche Holding AG is sporting a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RHHBY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
RHHBY currently has a forward P/E ratio of 14.51, while ABBV has a forward P/E of 18.01. We also note that RHHBY has a PEG ratio of 2.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABBV currently has a PEG ratio of 2.67.
Another notable valuation metric for RHHBY is its P/B ratio of 7.93. 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, ABBV has a P/B of 50.69.
Based on these metrics and many more, RHHBY holds a Value grade of B, while ABBV has a Value grade of C.
RHHBY sticks out from ABBV in both our Zacks Rank and Style Scores models, so value investors will likely feel that RHHBY is the better option right now.
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Investors interested in Large Cap Pharmaceuticals stocks are likely familiar with Roche Holding AG (RHHBY - Free Report) and AbbVie (ABBV - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Roche Holding AG is sporting a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RHHBY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
RHHBY currently has a forward P/E ratio of 14.51, while ABBV has a forward P/E of 18.01. We also note that RHHBY has a PEG ratio of 2.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABBV currently has a PEG ratio of 2.67.
Another notable valuation metric for RHHBY is its P/B ratio of 7.93. 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, ABBV has a P/B of 50.69.
Based on these metrics and many more, RHHBY holds a Value grade of B, while ABBV has a Value grade of C.
RHHBY sticks out from ABBV in both our Zacks Rank and Style Scores models, so value investors will likely feel that RHHBY is the better option right now.