Australia markets open in 5 hours 50 minutes

    +101.80 (+1.28%)

    -0.0010 (-0.14%)
  • ASX 200

    +105.10 (+1.36%)
  • OIL

    -0.48 (-0.59%)
  • GOLD

    -12.60 (-0.54%)
  • Bitcoin AUD

    +1,870.05 (+2.07%)
  • CMC Crypto 200

    +28.93 (+2.31%)

GEN vs. TT: Which Stock Should Value Investors Buy Now?

Investors with an interest in Technology Services stocks have likely encountered both Gen Digital (GEN) and Trane Technologies (TT). 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Gen Digital has a Zacks Rank of #2 (Buy), while Trane Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GEN likely has seen a stronger improvement to its earnings outlook than TT has recently. But this is just one piece of the puzzle for value investors.

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.


Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GEN currently has a forward P/E ratio of 11.10, while TT has a forward P/E of 32.30. We also note that GEN has a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TT currently has a PEG ratio of 2.69.

Another notable valuation metric for GEN is its P/B ratio of 7.22. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TT has a P/B of 11.07.

These metrics, and several others, help GEN earn a Value grade of A, while TT has been given a Value grade of C.

GEN 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 GEN 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

Gen Digital Inc. (GEN) : Free Stock Analysis Report

Trane Technologies plc (TT) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research