Investors looking for stocks in the Wireless Equipment sector might want to consider either Juniper Networks (JNPR) or Harris (HRS). But which of these two stocks presents investors with the better value opportunity right now? Let’s take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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, Juniper Networks is sporting a Zacks Rank of #2 (Buy), while Harris 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 JNPR has an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
JNPR currently has a forward P/E ratio of 16.87, while HRS has a forward P/E of 21.16. We also note that JNPR has a PEG ratio of 2.95. 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. HRS currently has a PEG ratio of 3.53.
Another notable valuation metric for JNPR is its P/B ratio of 2.35. 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, HRS has a P/B of 5.89.
These are just a few of the metrics contributing to JNPR’s Value grade of A and HRS’s Value grade of C.
JNPR sticks out from HRS in both our Zacks Rank and Style Scores models, so value investors will likely feel that JNPR is the better option right now.
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