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FLNC vs. GEV: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Fluence Energy, Inc. (FLNC - Free Report) and GE Vernova (GEV - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Fluence Energy, Inc. has a Zacks Rank of #1 (Strong Buy), while GE Vernova has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that FLNC likely has seen a stronger improvement to its earnings outlook than GEV has recently. 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.

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.

FLNC currently has a forward P/E ratio of 39.03, while GEV has a forward P/E of 104.31. We also note that FLNC has a PEG ratio of 0.69. 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. GEV currently has a PEG ratio of 4.97.

Another notable valuation metric for FLNC is its P/B ratio of 6.64. 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, GEV has a P/B of 7.56.

These metrics, and several others, help FLNC earn a Value grade of B, while GEV has been given a Value grade of C.

FLNC stands above GEV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FLNC is the superior value option right now.


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