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GBX vs. WAB: Which Stock Should Value Investors Buy Now?
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Investors interested in Transportation - Equipment and Leasing stocks are likely familiar with Greenbrier Companies (GBX - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Greenbrier Companies and Westinghouse Air Brake Technologies are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that GBX likely has seen a stronger improvement to its earnings outlook than WAB has recently. But this is only part of the picture for value investors.
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.
GBX currently has a forward P/E ratio of 11.76, while WAB has a forward P/E of 25.08. We also note that GBX has a PEG ratio of 0.50. 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. WAB currently has a PEG ratio of 1.48.
Another notable valuation metric for GBX is its P/B ratio of 1.24. 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, WAB has a P/B of 3.15.
These metrics, and several others, help GBX earn a Value grade of A, while WAB has been given a Value grade of D.
GBX sticks out from WAB in both our Zacks Rank and Style Scores models, so value investors will likely feel that GBX is the better option right now.
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GBX vs. WAB: Which Stock Should Value Investors Buy Now?
Investors interested in Transportation - Equipment and Leasing stocks are likely familiar with Greenbrier Companies (GBX - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Greenbrier Companies and Westinghouse Air Brake Technologies are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that GBX likely has seen a stronger improvement to its earnings outlook than WAB has recently. But this is only part of the picture for value investors.
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.
GBX currently has a forward P/E ratio of 11.76, while WAB has a forward P/E of 25.08. We also note that GBX has a PEG ratio of 0.50. 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. WAB currently has a PEG ratio of 1.48.
Another notable valuation metric for GBX is its P/B ratio of 1.24. 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, WAB has a P/B of 3.15.
These metrics, and several others, help GBX earn a Value grade of A, while WAB has been given a Value grade of D.
GBX sticks out from WAB in both our Zacks Rank and Style Scores models, so value investors will likely feel that GBX is the better option right now.