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KGEI or CEG: Which Is the Better Value Stock Right Now?

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Investors with an interest in Alternative Energy - Other stocks have likely encountered both Kolibri Global Energy Inc. (KGEI - Free Report) and Constellation Energy Corporation (CEG - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Kolibri Global Energy Inc. and Constellation Energy Corporation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KGEI has an improving earnings 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

KGEI currently has a forward P/E ratio of 10.76, while CEG has a forward P/E of 28.88. We also note that KGEI has a PEG ratio of 0.77. 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. CEG currently has a PEG ratio of 1.67.

Another notable valuation metric for KGEI is its P/B ratio of 1.01. 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, CEG has a P/B of 5.78.

Based on these metrics and many more, KGEI holds a Value grade of A, while CEG has a Value grade of C.

KGEI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KGEI is likely the superior value option right now.


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