Published on 22 Nov 2023 on Zacks via Yahoo Finance

DRS vs. HEI: Which Stock Is the Better Value Option?

Investors looking for stocks in the Aerospace - Defense Equipment sector might want to consider either Leonardo DRS, Inc. (DRS) or Heico Corporation (HEI). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Leonardo DRS, Inc. has a Zacks Rank of #2 (Buy), while Heico Corporation has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DRS has an improving earnings outlook. But this is just one piece of the puzzle for value investors.