CECE vs. CWST: Which Stock Should Value Investors Buy Now?
IInvestors interested in pollution control stocks are likely familiar with CECO Environmental (CECE) and Casella (CWST). But which of these two stocks offers value investors the best value right now? We will have to take a closer look.
There are many strategies for uncovering value stocks, but we’ve found that combining a strong Zacks ranking with an impressive rating in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision tendencies, and our style scores highlight companies with specific characteristics.
Currently, CECO Environmental sports a Zacks rank of #2 (Buy), while Casella has a Zacks rank of #3 (Hold). This system emphasizes companies that have experienced positive earnings estimate revisions, so investors should feel comfortable knowing that CECE will likely see its earnings outlook improve further. But this is only one factor that interests value investors.
Value investors analyze a variety of traditional and time-tested metrics to help find companies they believe are undervalued at their current stock price level.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including popular P/E ratio, as well as P/S ratio, earnings yield, cash flow per share and a variety other fundamentals that have been used. by value investors for years.
CECE currently has a forward P/E of 11.48, while CWST has a forward P/E of 70.66. We also note that the CECE has a PEG ratio of 0.77. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. CWST currently has a PEG ratio of 4.99.
Another notable valuation metric for CECE is its P/E ratio of 1.02. Investors use the P/E ratio to compare a stock’s market value to its book value, which is defined as total assets minus total liabilities. In comparison, CWST has a P/B of 8.64.
Based on these metrics and many more, CECE holds an A value rating, while CWST has a D value rating.
CECE is currently showing an improving earnings outlook, which makes it stand out in our Zacks Rank model. And, based on the valuation metrics above, we think CECE is likely the higher value option right now.
Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.
This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.