Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either TD SYNNEX (SNX) or Hoya Corp. (HOCPY). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
TD SYNNEX and Hoya Corp. are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This means that SNX'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 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.
SNX currently has a forward P/E ratio of 12.00, while HOCPY has a forward P/E of 34.47. We also note that SNX has a PEG ratio of 1.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HOCPY currently has a PEG ratio of 3.15.
Another notable valuation metric for SNX is its P/B ratio of 1.49. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HOCPY has a P/B of 7.72.
These are just a few of the metrics contributing to SNX's Value grade of A and HOCPY's Value grade of D.
SNX stands above HOCPY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.
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TD SYNNEX Corporation (SNX): Free Stock Analysis Report Hoya Corp. (HOCPY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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