EGHT vs. ZM: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Investors are evaluating the value propositions of 8x8 (EGHT) and Zoom Communications (ZM) to determine which stock offers better value at present [1] Valuation Metrics - Both EGHT and ZM currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - Value investors focus on various valuation metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Specific Valuation Comparisons - EGHT has a forward P/E ratio of 6.00, significantly lower than ZM's forward P/E of 14.01, suggesting EGHT may be undervalued [5] - The PEG ratio for EGHT is 0.85, while ZM's PEG ratio is 6.97, indicating EGHT's expected earnings growth is more favorable relative to its price [5] - EGHT's P/B ratio stands at 1.97 compared to ZM's P/B of 2.76, further supporting the notion that EGHT is the more attractive value option [6] - Based on these valuation metrics, EGHT is rated with a Value grade of A, while ZM has a Value grade of C, reinforcing EGHT's position as the superior value choice [6]