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PBH or SYK: Which Is the Better Value Stock Right Now? September 20, 2024
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Investors looking for stocks in the Medical - Products sector might want to consider either Prestige Consumer Healthcare (PBH - Free Report) or Stryker (SYK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Prestige Consumer Healthcare has a Zacks Rank of #2 (Buy), while Stryker 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 PBH 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PBH currently has a forward P/E ratio of 16.72, while SYK has a forward P/E of 30.43. We also note that PBH has a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SYK currently has a PEG ratio of 2.82.
Another notable valuation metric for PBH is its P/B ratio of 2.18. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SYK has a P/B of 7.04.
Based on these metrics and many more, PBH holds a Value grade of B, while SYK has a Value grade of D.
PBH has seen stronger estimate revision activity and sports more attractive valuation metrics than SYK, so it seems like value investors will conclude that PBH is the superior option right now.
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Investors looking for stocks in the Medical - Products sector might want to consider either Prestige Consumer Healthcare (PBH - Free Report) or Stryker (SYK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Prestige Consumer Healthcare has a Zacks Rank of #2 (Buy), while Stryker 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 PBH 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PBH currently has a forward P/E ratio of 16.72, while SYK has a forward P/E of 30.43. We also note that PBH has a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SYK currently has a PEG ratio of 2.82.
Another notable valuation metric for PBH is its P/B ratio of 2.18. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SYK has a P/B of 7.04.
Based on these metrics and many more, PBH holds a Value grade of B, while SYK has a Value grade of D.
PBH has seen stronger estimate revision activity and sports more attractive valuation metrics than SYK, so it seems like value investors will conclude that PBH is the superior option right now.