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TRP or ORA: Which Is the Better Value Stock Right Now?
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Investors interested in Alternative Energy - Other stocks are likely familiar with TC Energy (TRP - Free Report) and Ormat Technologies (ORA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, TC Energy is sporting a Zacks Rank of #2 (Buy), while Ormat Technologies has a Zacks Rank of #3 (Hold). This means that TRP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TRP currently has a forward P/E ratio of 13.77, while ORA has a forward P/E of 38.61. We also note that TRP has a PEG ratio of 3.44. 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. ORA currently has a PEG ratio of 3.86.
Another notable valuation metric for TRP is its P/B ratio of 1.52. 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, ORA has a P/B of 1.87.
These are just a few of the metrics contributing to TRP's Value grade of B and ORA's Value grade of C.
TRP sticks out from ORA in both our Zacks Rank and Style Scores models, so value investors will likely feel that TRP is the better option right now.
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TRP or ORA: Which Is the Better Value Stock Right Now?
Investors interested in Alternative Energy - Other stocks are likely familiar with TC Energy (TRP - Free Report) and Ormat Technologies (ORA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, TC Energy is sporting a Zacks Rank of #2 (Buy), while Ormat Technologies has a Zacks Rank of #3 (Hold). This means that TRP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TRP currently has a forward P/E ratio of 13.77, while ORA has a forward P/E of 38.61. We also note that TRP has a PEG ratio of 3.44. 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. ORA currently has a PEG ratio of 3.86.
Another notable valuation metric for TRP is its P/B ratio of 1.52. 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, ORA has a P/B of 1.87.
These are just a few of the metrics contributing to TRP's Value grade of B and ORA's Value grade of C.
TRP sticks out from ORA in both our Zacks Rank and Style Scores models, so value investors will likely feel that TRP is the better option right now.