U.S. markets open in 5 hours 16 minutes
  • S&P Futures

    4,147.00
    +5.25 (+0.13%)
     
  • Dow Futures

    32,835.00
    +43.00 (+0.13%)
     
  • Nasdaq Futures

    13,193.50
    +10.25 (+0.08%)
     
  • Russell 2000 Futures

    1,945.60
    +4.50 (+0.23%)
     
  • Crude Oil

    89.45
    -1.31 (-1.44%)
     
  • Gold

    1,805.70
    +0.50 (+0.03%)
     
  • Silver

    20.58
    -0.03 (-0.14%)
     
  • EUR/USD

    1.0225
    +0.0030 (+0.30%)
     
  • 10-Yr Bond

    2.7650
    0.0000 (0.00%)
     
  • Vix

    21.51
    +0.36 (+1.70%)
     
  • GBP/USD

    1.2095
    +0.0014 (+0.11%)
     
  • USD/JPY

    134.8420
    -0.1310 (-0.10%)
     
  • BTC-USD

    23,854.49
    +40.75 (+0.17%)
     
  • CMC Crypto 200

    557.20
    +14.32 (+2.64%)
     
  • FTSE 100

    7,482.78
    +0.41 (+0.01%)
     
  • Nikkei 225

    27,999.96
    -249.28 (-0.88%)
     

VOD or CRNT: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors looking for stocks in the Wireless Non-US sector might want to consider either Vodafone Group PLC (VOD) or Ceragon Networks (CRNT). 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 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.

Currently, Vodafone Group PLC has a Zacks Rank of #2 (Buy), while Ceragon Networks has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VOD has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

VOD currently has a forward P/E ratio of 16.01, while CRNT has a forward P/E of 73. We also note that VOD 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. CRNT currently has a PEG ratio of 4.87.

Another notable valuation metric for VOD is its P/B ratio of 0.59. 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, CRNT has a P/B of 1.57.

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

VOD sticks out from CRNT in both our Zacks Rank and Style Scores models, so value investors will likely feel that VOD is the better 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
 
Vodafone Group PLC (VOD) : Free Stock Analysis Report
 
Ceragon Networks Ltd. (CRNT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research