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GLW or ANET: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Communication - Components sector might want to consider either Corning (GLW - Free Report) or Arista Networks (ANET - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Corning and Arista Networks are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GLW currently has a forward P/E ratio of 24.46, while ANET has a forward P/E of 46.65. We also note that GLW has a PEG ratio of 1.52. 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. ANET currently has a PEG ratio of 3.05.
Another notable valuation metric for GLW is its P/B ratio of 3.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ANET has a P/B of 14.40.
These metrics, and several others, help GLW earn a Value grade of B, while ANET has been given a Value grade of D.
Both GLW and ANET are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GLW is the superior value option right now.
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GLW or ANET: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Communication - Components sector might want to consider either Corning (GLW - Free Report) or Arista Networks (ANET - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Corning and Arista Networks are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GLW currently has a forward P/E ratio of 24.46, while ANET has a forward P/E of 46.65. We also note that GLW has a PEG ratio of 1.52. 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. ANET currently has a PEG ratio of 3.05.
Another notable valuation metric for GLW is its P/B ratio of 3.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ANET has a P/B of 14.40.
These metrics, and several others, help GLW earn a Value grade of B, while ANET has been given a Value grade of D.
Both GLW and ANET are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GLW is the superior value option right now.