LH or ALGN: Which Is the Better Value Stock Right Now?

Core Insights - Investors in the Medical - Dental Supplies sector may consider Labcorp (LH) or Align Technology (ALGN) for potential undervalued stock opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Labcorp has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Align Technology has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that Labcorp's earnings outlook is improving more significantly than Align Technology's [3][7] Group 2: Valuation Metrics - Labcorp has a forward P/E ratio of 15.57, compared to Align Technology's forward P/E of 22.40 [5] - Labcorp's PEG ratio is 1.85, while Align Technology's PEG ratio is significantly higher at 3.97, indicating that Labcorp may be undervalued relative to its expected earnings growth [5] - Labcorp's P/B ratio is 2.54, whereas Align Technology's P/B ratio is 4.28, further supporting Labcorp's position as a more attractive value option [6] Group 3: Value Grades - Based on various valuation metrics, Labcorp holds a Value grade of B, while Align Technology has a Value grade of D, reinforcing Labcorp's superior value proposition [6]