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RHHBY or ABBV: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Roche Holding AG (RHHBY - Free Report) or AbbVie (ABBV - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Roche Holding AG is sporting a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #3 (Hold). This means that RHHBY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
RHHBY currently has a forward P/E ratio of 14.03, while ABBV has a forward P/E of 18.43. We also note that RHHBY has a PEG ratio of 1.93. 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. ABBV currently has a PEG ratio of 2.47.
Another notable valuation metric for RHHBY is its P/B ratio of 7.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ABBV has a P/B of 58.56.
These are just a few of the metrics contributing to RHHBY's Value grade of B and ABBV's Value grade of C.
RHHBY has seen stronger estimate revision activity and sports more attractive valuation metrics than ABBV, so it seems like value investors will conclude that RHHBY is the superior option right now.
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RHHBY or ABBV: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Roche Holding AG (RHHBY - Free Report) or AbbVie (ABBV - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Roche Holding AG is sporting a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #3 (Hold). This means that RHHBY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
RHHBY currently has a forward P/E ratio of 14.03, while ABBV has a forward P/E of 18.43. We also note that RHHBY has a PEG ratio of 1.93. 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. ABBV currently has a PEG ratio of 2.47.
Another notable valuation metric for RHHBY is its P/B ratio of 7.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ABBV has a P/B of 58.56.
These are just a few of the metrics contributing to RHHBY's Value grade of B and ABBV's Value grade of C.
RHHBY has seen stronger estimate revision activity and sports more attractive valuation metrics than ABBV, so it seems like value investors will conclude that RHHBY is the superior option right now.