Advertisement
U.S. markets close in 5 hours 41 minutes
  • S&P 500

    5,250.12
    +1.63 (+0.03%)
     
  • Dow 30

    39,749.05
    -11.03 (-0.03%)
     
  • Nasdaq

    16,389.26
    -10.26 (-0.06%)
     
  • Russell 2000

    2,123.30
    +8.95 (+0.42%)
     
  • Crude Oil

    82.36
    +1.01 (+1.24%)
     
  • Gold

    2,226.80
    +14.10 (+0.64%)
     
  • Silver

    24.69
    -0.06 (-0.23%)
     
  • EUR/USD

    1.0807
    -0.0022 (-0.21%)
     
  • 10-Yr Bond

    4.2000
    +0.0040 (+0.10%)
     
  • GBP/USD

    1.2637
    -0.0001 (-0.01%)
     
  • USD/JPY

    151.2870
    +0.0410 (+0.03%)
     
  • Bitcoin USD

    70,802.56
    +1,575.49 (+2.28%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,961.77
    +29.79 (+0.38%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

MNRO vs. CRCM: Which Stock Should Value Investors Buy Now?

Does MasTec (MTZ) have what it takes to be a top stock pick for momentum investors? Let's find out.

Investors looking for stocks in the Consumer Services - Miscellaneous sector might want to consider either Monro Muffler Brake (MNRO) or Care.com (CRCM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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, Monro Muffler Brake is sporting a Zacks Rank of #2 (Buy), while Care.com has a Zacks Rank of #3 (Hold). This means that MNRO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

MNRO currently has a forward P/E ratio of 28.46, while CRCM has a forward P/E of 58.94. We also note that MNRO has a PEG ratio of 2.28. 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. CRCM currently has a PEG ratio of 3.93.

Another notable valuation metric for MNRO is its P/B ratio of 3.57. 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, CRCM has a P/B of 6.68.

These metrics, and several others, help MNRO earn a Value grade of B, while CRCM has been given a Value grade of D.

MNRO 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 MNRO is likely the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Monro Muffler Brake, Inc. (MNRO) : Free Stock Analysis Report
 
Care.com, Inc. (CRCM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Advertisement