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GLDD vs. DY: Which Stock Should Value Investors Buy Now?
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Investors interested in Building Products - Heavy Construction stocks are likely familiar with Great Lakes Dredge & Dock (GLDD - Free Report) and Dycom Industries (DY - 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.
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.
Currently, Great Lakes Dredge & Dock has a Zacks Rank of #1 (Strong Buy), while Dycom Industries has a Zacks Rank of #3 (Hold). This means that GLDD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
GLDD currently has a forward P/E ratio of 11.62, while DY has a forward P/E of 25.53. We also note that GLDD has a PEG ratio of 0.97. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DY currently has a PEG ratio of 1.22.
Another notable valuation metric for GLDD is its P/B ratio of 1.66. 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, DY has a P/B of 5.33.
These are just a few of the metrics contributing to GLDD's Value grade of A and DY's Value grade of C.
GLDD sticks out from DY in both our Zacks Rank and Style Scores models, so value investors will likely feel that GLDD is the better option right now.
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GLDD vs. DY: Which Stock Should Value Investors Buy Now?
Investors interested in Building Products - Heavy Construction stocks are likely familiar with Great Lakes Dredge & Dock (GLDD - Free Report) and Dycom Industries (DY - 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.
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.
Currently, Great Lakes Dredge & Dock has a Zacks Rank of #1 (Strong Buy), while Dycom Industries has a Zacks Rank of #3 (Hold). This means that GLDD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
GLDD currently has a forward P/E ratio of 11.62, while DY has a forward P/E of 25.53. We also note that GLDD has a PEG ratio of 0.97. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DY currently has a PEG ratio of 1.22.
Another notable valuation metric for GLDD is its P/B ratio of 1.66. 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, DY has a P/B of 5.33.
These are just a few of the metrics contributing to GLDD's Value grade of A and DY's Value grade of C.
GLDD sticks out from DY in both our Zacks Rank and Style Scores models, so value investors will likely feel that GLDD is the better option right now.