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FLEX vs. GRMN: Which Stock Should Value Investors Buy Now?

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Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Flex (FLEX) and Garmin (GRMN). 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 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.

Flex has a Zacks Rank of #2 (Buy), while Garmin has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that FLEX likely has seen a stronger improvement to its earnings outlook than GRMN has recently. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

FLEX currently has a forward P/E ratio of 9.92, while GRMN has a forward P/E of 26.34. We also note that FLEX has a PEG ratio of 0.87. 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. GRMN currently has a PEG ratio of 3.87.

Another notable valuation metric for FLEX is its P/B ratio of 2.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GRMN has a P/B of 4.69.

These are just a few of the metrics contributing to FLEX's Value grade of A and GRMN's Value grade of C.

FLEX sticks out from GRMN in both our Zacks Rank and Style Scores models, so value investors will likely feel that FLEX is the better option right now.


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Flex Ltd. (FLEX) : Free Stock Analysis Report
 
Garmin Ltd. (GRMN) : Free Stock Analysis Report
 
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