Investors interested in Leisure and Recreation Services stocks are likely familiar with Carnival (CCL) and Viking Holdings (VIK). 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Carnival is sporting a Zacks Rank of #2 (Buy), while Viking Holdings has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CCL likely has seen a stronger improvement to its earnings outlook than VIK has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
CCL currently has a forward P/E ratio of 11.90, while VIK has a forward P/E of 26.78. We also note that CCL has a PEG ratio of 0.53. 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. VIK currently has a PEG ratio of 0.77.
Another notable valuation metric for CCL is its P/B ratio of 2.52. 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, VIK has a P/B of 36.83.
These are just a few of the metrics contributing to CCL's Value grade of A and VIK's Value grade of C.
CCL sticks out from VIK in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCL is the better option right now.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Carnival Corporation (CCL) : Free Stock Analysis Report
Viking Holdings Ltd. (VIK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
