Advertisement
New Zealand markets closed

  • NZX 50

    11,938.08
    +64.04 (+0.54%)
     

  • NZD/USD

    0.6012
    +0.0049 (+0.83%)
     

  • NZD/EUR

    0.5579
    +0.0023 (+0.42%)
     

  • ALL ORDS

    7,897.50
    +48.10 (+0.61%)
     

  • ASX 200

    7,629.00
    +42.00 (+0.55%)
     

  • OIL

    77.99
    -0.96 (-1.22%)
     

  • GOLD

    2,310.10
    +0.50 (+0.02%)
     

  • NASDAQ

    17,890.79
    +349.25 (+1.99%)
     

  • FTSE

    8,213.49
    +41.34 (+0.51%)
     

  • Dow Jones

    38,675.68
    +450.02 (+1.18%)
     

  • DAX

    18,001.60
    +105.10 (+0.59%)
     

  • Hang Seng

    18,475.92
    +268.79 (+1.48%)
     

  • NIKKEI 225

    38,236.07
    -37.98 (-0.10%)
     

  • NZD/JPY

    91.9390
    +0.3640 (+0.40%)
     

ESLOY vs. ABT: Which Stock Should Value Investors Buy Now?

Zacks Equity Research
·2-min read

Investors interested in Medical - Products stocks are likely familiar with EssilorLuxottica Unsponsored ADR (ESLOY) and Abbott (ABT). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

EssilorLuxottica Unsponsored ADR has a Zacks Rank of #2 (Buy), while Abbott has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ESLOY likely has seen a stronger improvement to its earnings outlook than ABT has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

ADVERTISEMENT

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.

ESLOY currently has a forward P/E ratio of 23.36, while ABT has a forward P/E of 23.84. We also note that ESLOY has a PEG ratio of 1.11. 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. ABT currently has a PEG ratio of 3.04.

Another notable valuation metric for ESLOY is its P/B ratio of 1.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ABT has a P/B of 5.65.

These metrics, and several others, help ESLOY earn a Value grade of B, while ABT has been given a Value grade of C.

ESLOY 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 ESLOY 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
 
EssilorLuxottica Unsponsored ADR (ESLOY) : Free Stock Analysis Report
 
Abbott Laboratories (ABT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.