Investors interested in stocks from the Schools sector have probably already heard of Adtalem Global Education (ATGE) and Lincoln Educational Services Corporation (LINC) . But which of these two companies is the best option for those looking for undervalued stocks? 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 prov ...

Company Performance - MercadoLibre's stock closed at $2,501.31, reflecting a +1.33% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.26% [1] - Over the past month, shares of MercadoLibre have decreased by 0.18%, underperforming the Retail-Wholesale sector's gain of 0.76% and the S&P 500's gain of 2.87% [2] Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $9.88, representing a 26.18% increase from the same quarter last year, with projected net sales of $7.17 billion, up 35.05% year-over-year [3] - For the full year, earnings are expected to be $44.43 per share and revenue is projected at $27.78 billion, indicating increases of +17.88% and +33.72% respectively from the previous year [4] Analyst Sentiment - Recent revisions to analyst forecasts for MercadoLibre are crucial as they reflect changing business trends, with upward revisions indicating positive sentiment towards the company's operations and profit generation capabilities [5] - The Zacks Rank system currently rates MercadoLibre at 4 (Sell), with no changes in the consensus EPS estimate over the past month [7] Valuation Metrics - MercadoLibre's Forward P/E ratio stands at 55.56, which is significantly higher than the industry average of 22.36, while its PEG ratio is 1.61 compared to the Internet - Commerce industry's average PEG ratio of 1.47 [8] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 71, placing it in the top 29% of over 250 industries, indicating strong performance potential [9]

Core Viewpoint - Genpact (G) is currently viewed as a better value opportunity compared to ServiceNow (NOW) based on various financial metrics and analyst outlooks [1]. Group 1: Zacks Rank and Analyst Outlook - Genpact has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while ServiceNow has a Zacks Rank of 3 (Hold) [3]. - The earnings estimate revision activity for Genpact has been more impressive, suggesting a more favorable analyst outlook [3]. Group 2: Valuation Metrics - Genpact has a forward P/E ratio of 11.62, significantly lower than ServiceNow's forward P/E of 57.17 [5]. - The PEG ratio for Genpact is 1.26, while ServiceNow's PEG ratio is 2.40, indicating that Genpact is expected to grow earnings at a more favorable rate relative to its price [5]. - Genpact's P/B ratio is 2.78, compared to ServiceNow's P/B of 18.29, further highlighting Genpact's relative undervaluation [6]. - Based on these valuation metrics, Genpact earns a Value grade of A, while ServiceNow receives a Value grade of F [6].

Group 1 - Growth stocks have been dominating the market in recent years, leading to global indices being influenced by a limited number of stocks and resulting in record high valuation metrics [1]

Core Insights - MongoDB's stock closed at $212.70, reflecting a -2.7% change from the previous day, underperforming compared to the S&P 500's -0.24% loss [1] - The upcoming earnings report is expected to show an EPS of $0.64, an 8.57% decline year-over-year, with anticipated revenue of $551.05 million, a 15.26% increase from the same quarter last year [2] - For the full year, earnings are projected at $3.07 per share, down 16.12% from the previous year, while revenue is expected to reach $2.28 billion, up 13.48% [3] Analyst Estimates - Recent changes in analyst estimates for MongoDB are crucial as they reflect short-term business trends and analysts' confidence in performance [4] - The Zacks Rank system, which evaluates estimate changes, indicates MongoDB currently holds a Zacks Rank of 3 (Hold), with no changes in the EPS estimate over the last 30 days [6] Valuation Metrics - MongoDB's Forward P/E ratio stands at 71.25, significantly higher than the industry average of 28.95, indicating a premium valuation [7] - The company has a PEG ratio of 7.31, compared to the Internet - Software industry's average PEG ratio of 2.26, suggesting a higher valuation relative to growth expectations [8] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, ranks in the top 30% of all industries, with a Zacks Industry Rank of 74 [8] - Research indicates that industries in the top 50% outperform those in the bottom half by a factor of 2 to 1, highlighting the competitive positioning of MongoDB's industry [9]

Core Viewpoint - Shopify's stock price may be ahead of its fundamentals, prompting a closer examination of its valuation metrics to assess potential investment opportunities [2][11]. Group 1: Shopify's Valuation - Shopify's valuation is influenced by its growth rates and financial metrics, with the e-commerce platform industry expected to grow at a CAGR of 20% through 2033 [4]. - Shopify holds a 29% market share in the U.S. and 10% globally, positioning it to capture significant growth in the e-commerce sector [4]. - The company's P/E ratio stands at 101, significantly higher than the S&P 500 average of 30, raising concerns about its valuation [5]. - The forward P/E ratio is 90, indicating a high valuation from an earnings perspective, while the price-to-free-cash-flow ratio is 94 [5]. - The price-to-sales (P/S) ratio is 17, much higher than the S&P 500 average of around 3, but lower than its 2021 levels above 40 [6]. - The price-to-book ratio is 15, again above the S&P 500 average of 5, but typical for a growth stock [6]. Group 2: Shopify's Financial Performance - In Q1 2025, Shopify reported nearly $2.4 billion in revenue, reflecting a 27% increase year-over-year, closely matching the 26% growth rate for 2024 [7]. - The company reported a net loss of $862 million in Q1 2025, primarily due to a $1 billion unrealized net loss from investments, despite earning an operating profit [8]. - Shopify's projected revenue growth for Q2 2025 is in the mid-20s percentage range, with analysts forecasting a 23% increase for the full year, indicating a potential slowdown [9]. - The stock price has increased by over 110% in the past year, although it remains about 30% below its 2021 high [10]. Group 3: Long-term Outlook - From a long-term perspective, Shopify's premium valuation may be justified due to its leadership in the e-commerce platform industry [12]. - The projected 20% annual growth in the industry over the next eight years enhances Shopify's potential to capture a significant share of this growth [12]. - Even if Shopify's valuation appears ahead of its growth, it is positioned to outperform the market over time [12].

Core Viewpoint - The comparison between Carnival (CCL) and Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) indicates that CCL currently offers better value for investors based on various financial metrics and rankings [1][3][7]. Valuation Metrics - CCL has a forward P/E ratio of 12.63, while ATAT has a forward P/E of 20.03, suggesting that CCL is more attractively priced [5]. - The PEG ratio for CCL is 0.55, compared to ATAT's PEG ratio of 0.92, indicating that CCL may offer better value relative to its expected earnings growth [5]. - CCL's P/B ratio stands at 2.99, significantly lower than ATAT's P/B ratio of 9.91, further supporting the notion that CCL is undervalued [6]. Zacks Rank and Value Grades - CCL holds a Zacks Rank of 2 (Buy), while ATAT has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for CCL [3][7]. - CCL has a Value grade of A, whereas ATAT has a Value grade of C, reflecting CCL's superior valuation metrics [6].

Core Viewpoint - Investors in the Electronics - Semiconductors sector should consider Qualcomm (QCOM) and Applied Materials (AMAT) for potential value opportunities [1] Valuation Metrics - Qualcomm has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Applied Materials has a Zacks Rank of 3 (Hold) [3] - QCOM's forward P/E ratio is 12.54, compared to AMAT's forward P/E of 16.18, suggesting QCOM may be undervalued [5] - The PEG ratio for QCOM is 1.36, while AMAT's PEG ratio is 1.60, indicating QCOM has a more favorable growth outlook relative to its valuation [5] - QCOM's P/B ratio is 6.14, while AMAT's P/B ratio is 6.61, further supporting QCOM's relative valuation attractiveness [6] - Based on these metrics, QCOM holds a Value grade of B, while AMAT has a Value grade of C [6] Conclusion - QCOM has demonstrated stronger estimate revision activity and more attractive valuation metrics than AMAT, making it a superior option for value investors at this time [7]

Core Insights - The article compares two stocks in the Financial Transaction Services sector: PagSeguro Digital Ltd. (PAGS) and Shift4 Payments (FOUR) to determine which is more attractive to value investors [1] Valuation Metrics - PAGS has a forward P/E ratio of 6.85, while FOUR has a forward P/E of 16.18 [5] - PAGS has a PEG ratio of 0.61, and FOUR has a PEG ratio of 0.62, indicating similar expected earnings growth rates [5] - PAGS has a P/B ratio of 1.03, compared to FOUR's P/B ratio of 6.72, suggesting PAGS is more undervalued relative to its book value [6] Analyst Outlook - PAGS currently holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to FOUR, which has a Zacks Rank of 3 (Hold) [3] - PAGS has a Value grade of B, while FOUR has a Value grade of C, further supporting PAGS as the superior value option [6]

Core Viewpoint - Baidu Inc. (BIDU) is currently viewed as a better value opportunity compared to HealthStream (HSTM) based on various valuation metrics and earnings outlook improvements [1][3][7] Valuation Metrics - BIDU has a forward P/E ratio of 9.09, significantly lower than HSTM's forward P/E of 51.23 [5] - The PEG ratio for BIDU is 2.17, while HSTM's PEG ratio is 4.27, indicating BIDU's expected earnings growth is more favorably priced [5] - BIDU's P/B ratio stands at 0.81, compared to HSTM's P/B of 2.85, suggesting BIDU is undervalued relative to its book value [6] Zacks Rank and Value Grades - BIDU holds a Zacks Rank of 2 (Buy), while HSTM has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for BIDU [3][7] - Based on valuation metrics, BIDU has a Value grade of A, whereas HSTM has a Value grade of D, further supporting the conclusion that BIDU is the superior investment option [6]