We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
STRL vs. ACM: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Sterling Infrastructure (STRL - Free Report) or Aecom Technology (ACM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Sterling Infrastructure is sporting a Zacks Rank of #1 (Strong Buy), while Aecom Technology has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STRL likely has seen a stronger improvement to its earnings outlook than ACM has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
STRL currently has a forward P/E ratio of 16.52, while ACM has a forward P/E of 18.64. We also note that STRL has a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACM currently has a PEG ratio of 1.59.
Another notable valuation metric for STRL is its P/B ratio of 4.51. 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, ACM has a P/B of 5.26.
These metrics, and several others, help STRL earn a Value grade of B, while ACM has been given a Value grade of C.
STRL 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 STRL is likely the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
STRL vs. ACM: Which Stock Is the Better Value Option?
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Sterling Infrastructure (STRL - Free Report) or Aecom Technology (ACM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Sterling Infrastructure is sporting a Zacks Rank of #1 (Strong Buy), while Aecom Technology has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STRL likely has seen a stronger improvement to its earnings outlook than ACM has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
STRL currently has a forward P/E ratio of 16.52, while ACM has a forward P/E of 18.64. We also note that STRL has a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACM currently has a PEG ratio of 1.59.
Another notable valuation metric for STRL is its P/B ratio of 4.51. 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, ACM has a P/B of 5.26.
These metrics, and several others, help STRL earn a Value grade of B, while ACM has been given a Value grade of C.
STRL 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 STRL is likely the superior value option right now.