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ESLOY or ABT: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Products stocks have likely encountered both EssilorLuxottica Unsponsored ADR (ESLOY) and Abbott (ABT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

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 only part of the picture for value investors.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

ESLOY currently has a forward P/E ratio of 22.11, while ABT has a forward P/E of 22.16. We also note that ESLOY has a PEG ratio of 1.05. 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 3.87.

Another notable valuation metric for ESLOY is its P/B ratio of 1.56. 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, ABT has a P/B of 5.26.

These are just a few of the metrics contributing to ESLOY's Value grade of B and ABT's Value grade of C.

ESLOY stands above ABT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ESLOY is the superior value option right now.


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EssilorLuxottica Unsponsored ADR (ESLOY) : Free Stock Analysis Report
 
Abbott Laboratories (ABT) : Free Stock Analysis Report
 
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Zacks Investment Research

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