U.S. markets open in 4 minutes
  • S&P Futures

    4,133.50
    +5.75 (+0.14%)
     
  • Dow Futures

    33,691.00
    -18.00 (-0.05%)
     
  • Nasdaq Futures

    13,773.25
    +23.00 (+0.17%)
     
  • Russell 2000 Futures

    2,241.40
    +13.10 (+0.59%)
     
  • Crude Oil

    61.58
    +0.15 (+0.24%)
     
  • Gold

    1,790.40
    +8.40 (+0.47%)
     
  • Silver

    26.37
    +0.19 (+0.73%)
     
  • EUR/USD

    1.2071
    +0.0054 (+0.45%)
     
  • 10-Yr Bond

    1.5400
    -0.0140 (-0.90%)
     
  • Vix

    18.58
    +1.08 (+6.17%)
     
  • GBP/USD

    1.3861
    +0.0018 (+0.13%)
     
  • USD/JPY

    107.6240
    -0.3360 (-0.31%)
     
  • BTC-USD

    48,916.74
    -6,085.00 (-11.06%)
     
  • CMC Crypto 200

    1,121.51
    -121.55 (-9.78%)
     
  • FTSE 100

    6,896.36
    -41.88 (-0.60%)
     
  • Nikkei 225

    29,020.63
    -167.54 (-0.57%)
     

SPB or CUYTY: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of Spectrum Brands (SPB) and Colruyt SA Unsponsored ADR (CUYTY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Spectrum Brands and Colruyt SA Unsponsored ADR are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

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.

SPB currently has a forward P/E ratio of 16.41, while CUYTY has a forward P/E of 17.47. We also note that SPB has a PEG ratio of 0.90. 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. CUYTY currently has a PEG ratio of 8.09.

Another notable valuation metric for SPB is its P/B ratio of 2.42. 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, CUYTY has a P/B of 3.48.

These are just a few of the metrics contributing to SPB's Value grade of A and CUYTY's Value grade of D.

Both SPB and CUYTY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPB is 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
 
Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report
 
Colruyt SA Unsponsored ADR (CUYTY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.