APPS or ZM: Which Is the Better Value Stock Right Now?

Core Viewpoint - Digital Turbine (APPS) is currently viewed as a more attractive undervalued stock compared to Zoom Communications (ZM) based on various financial metrics and rankings [1][3][6]. Group 1: Zacks Rank and Earnings Outlook - Digital Turbine has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while Zoom Communications has a Zacks Rank of 2 (Buy) [3]. - The Zacks Rank system emphasizes companies with improving earnings outlooks, suggesting that APPS is likely experiencing a more favorable earnings forecast than ZM [3]. Group 2: Valuation Metrics - Digital Turbine has a forward P/E ratio of 12.28, significantly lower than Zoom Communications' forward P/E of 16.07, indicating that APPS may be undervalued relative to ZM [5]. - The PEG ratio for Digital Turbine is 0.30, while Zoom Communications has a PEG ratio of 5.60, further suggesting that APPS is a better value option considering expected earnings growth [5]. - Digital Turbine's P/B ratio stands at 2.55 compared to Zoom Communications' P/B of 3.04, reinforcing the notion that APPS is more attractively priced [6]. Group 3: Value Grades - Digital Turbine has a Value grade of B, while Zoom Communications has a Value grade of C, indicating that APPS is perceived as a stronger value investment at this time [6].