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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either SPECTRIS PLC (SEPJY) or Trimble Navigation (TRMB). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
SPECTRIS PLC and Trimble Navigation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SEPJY likely has seen a stronger improvement to its earnings outlook than TRMB has recently. But this is only part of the picture for value investors.
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.
SEPJY currently has a forward P/E ratio of 12.08, while TRMB has a forward P/E of 17.50. We also note that SEPJY has a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRMB currently has a PEG ratio of 2.33.
Another notable valuation metric for SEPJY is its P/B ratio of 1.72. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TRMB has a P/B of 2.65.
These are just a few of the metrics contributing to SEPJY's Value grade of A and TRMB's Value grade of D.
SEPJY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SEPJY is likely the superior value option right now.
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SPECTRIS PLC (SEPJY): Free Stock Analysis Report
Trimble Inc. (TRMB): Free Stock Analysis Report
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