CTSH or ACN: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors are evaluating the value opportunities between Cognizant (CTSH) and Accenture (ACN) in the IT Services sector, with a focus on which stock presents a better investment at the current time [1] Valuation Metrics - Cognizant (CTSH) has a forward P/E ratio of 16.22, while Accenture (ACN) has a forward P/E of 19.59, indicating that CTSH may be undervalued compared to ACN [5] - The PEG ratio for CTSH is 1.74, suggesting a more favorable growth outlook relative to its price, whereas ACN has a PEG ratio of 2.61, indicating a higher valuation for its expected growth [5] - CTSH's P/B ratio stands at 2.76, compared to ACN's P/B of 5.58, further supporting the notion that CTSH is more attractively valued [6] Zacks Rank and Earnings Outlook - Currently, Cognizant holds a Zacks Rank of 2 (Buy), while Accenture has a Zacks Rank of 3 (Hold), reflecting a more positive earnings estimate revision trend for CTSH [3] - The Zacks Rank system emphasizes companies with improving earnings outlooks, which is favorable for CTSH, making it a more appealing option for value investors [3][7] Value Grades - Based on various valuation metrics, CTSH has received a Value grade of B, while ACN has a Value grade of C, indicating that CTSH is perceived as a better value investment at this time [6]