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HELE or LRLCY: Which Is the Better Value Stock Right Now?
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Investors interested in Cosmetics stocks are likely familiar with Helen of Troy (HELE - Free Report) and L'Oreal SA (LRLCY - 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 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.
Helen of Troy and L'Oreal SA are both sporting a Zacks Rank of # 2 (Buy) right now. 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. However, value investors will care about much more than just this.
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.
HELE currently has a forward P/E ratio of 7.69, while LRLCY has a forward P/E of 24.56. We also note that HELE has a PEG ratio of 1.54. 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. LRLCY currently has a PEG ratio of 2.97.
Another notable valuation metric for HELE is its P/B ratio of 0.78. 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, LRLCY has a P/B of 5.85.
These metrics, and several others, help HELE earn a Value grade of A, while LRLCY has been given a Value grade of F.
Both HELE and LRLCY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HELE is the superior value option right now.
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HELE or LRLCY: Which Is the Better Value Stock Right Now?
Investors interested in Cosmetics stocks are likely familiar with Helen of Troy (HELE - Free Report) and L'Oreal SA (LRLCY - 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 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.
Helen of Troy and L'Oreal SA are both sporting a Zacks Rank of # 2 (Buy) right now. 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. However, value investors will care about much more than just this.
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.
HELE currently has a forward P/E ratio of 7.69, while LRLCY has a forward P/E of 24.56. We also note that HELE has a PEG ratio of 1.54. 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. LRLCY currently has a PEG ratio of 2.97.
Another notable valuation metric for HELE is its P/B ratio of 0.78. 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, LRLCY has a P/B of 5.85.
These metrics, and several others, help HELE earn a Value grade of A, while LRLCY has been given a Value grade of F.
Both HELE and LRLCY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HELE is the superior value option right now.