Zacks Rank

Search documents
LDOS or NOW: Which Is the Better Value Stock Right Now?
ZACKS· 2025-08-15 16:40
Core Viewpoint - Investors are evaluating Leidos (LDOS) and ServiceNow (NOW) for potential undervalued stock opportunities, with LDOS currently appearing as the more favorable option based on various valuation metrics [1][7]. Valuation Metrics - LDOS has a forward P/E ratio of 16.12, significantly lower than NOW's forward P/E of 50.67, indicating that LDOS may be undervalued relative to its earnings potential [5]. - The PEG ratio for LDOS is 2.10, while NOW's PEG ratio is slightly higher at 2.13, suggesting that LDOS offers a better balance between price and expected earnings growth [5]. - LDOS has a P/B ratio of 4.86 compared to NOW's P/B of 16.19, further supporting the argument that LDOS is more attractively valued [6]. Zacks Rank and Value Grades - LDOS holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to recent estimate revisions, while NOW has a Zacks Rank of 3 (Hold) [3]. - In terms of value grades, LDOS has a Value grade of B, whereas NOW has a Value grade of F, highlighting LDOS's stronger position in terms of value investing metrics [6]. Conclusion - Based on stronger estimate revision activity and more attractive valuation metrics, LDOS is positioned as the superior choice for value investors compared to NOW [7].
BZLFY vs. MDLZ: Which Stock Is the Better Value Option?
ZACKS· 2025-08-08 16:41
Core Insights - Bunzl PLC (BZLFY) currently presents a better value opportunity compared to Mondelez (MDLZ) based on various financial metrics and rankings [1][3][7] Valuation Metrics - Bunzl PLC has a forward P/E ratio of 12.78, significantly lower than Mondelez's forward P/E of 20.59, indicating that Bunzl may be undervalued [5] - The PEG ratio for Bunzl is 1.18, while Mondelez has a PEG ratio of 4.72, suggesting that Bunzl offers better growth potential relative to its price [5] - Bunzl's P/B ratio stands at 2.83 compared to Mondelez's P/B of 3.08, further supporting the argument that Bunzl is more attractively valued [6] Earnings Estimates - Bunzl holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while Mondelez has a Zacks Rank of 3 (Hold), suggesting a less favorable outlook [3][7] - The stronger estimate revision activity for Bunzl indicates an improving earnings outlook compared to Mondelez [7]
Should Value Investors Buy Continental (CTTAY) Stock?
ZACKS· 2025-07-16 14:41
Group 1 - The Zacks Rank emphasizes earnings estimates and revisions to identify strong stocks, while also considering value, growth, and momentum trends [1][2] - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to find undervalued stocks [2] - The Style Scores system can help investors find stocks with specific traits, particularly in the "Value" category [3] Group 2 - Continental (CTTAY) has a Zacks Rank of 2 (Buy) and an A for Value, with a P/E ratio of 9.37 compared to the industry average of 21.66 [4] - CTTAY's PEG ratio is 0.70, while the industry average is 1.18, indicating potential undervaluation [5] - The P/S ratio for CTTAY is 0.47, lower than the industry's average P/S of 0.64, further suggesting undervaluation [6] - Overall, CTTAY appears to be undervalued based on various metrics and has a strong earnings outlook, making it a compelling value stock [7]
QGEN or EXAS: Which Is the Better Value Stock Right Now?
ZACKS· 2025-07-10 16:40
Core Insights - Investors in the Medical - Biomedical and Genetics sector should consider Qiagen (QGEN) and Exact Sciences (EXAS) for potential value opportunities [1] Valuation Metrics - Both QGEN and EXAS currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - QGEN has a forward P/E ratio of 20.46, significantly lower than EXAS's forward P/E of 345.69, suggesting QGEN may be undervalued [5] - The PEG ratio for QGEN is 2.44, while EXAS has a much higher PEG ratio of 11.81, indicating QGEN's expected earnings growth is more favorable [5] - QGEN's P/B ratio is 3.13 compared to EXAS's P/B of 4.35, further supporting QGEN as the more attractive value option [6] - Based on various valuation metrics, QGEN holds a Value grade of B, while EXAS has a Value grade of C, reinforcing QGEN's position as the superior value stock [6]
WNS or TRI: Which Is the Better Value Stock Right Now?
ZACKS· 2025-07-09 16:40
Core Viewpoint - Investors are evaluating WNS (Holdings) Limited and Thomson Reuters for potential value opportunities in the Business - Services sector, with WNS currently presenting a stronger case for investment [1]. Valuation Metrics - WNS has a forward P/E ratio of 16.27, significantly lower than Thomson Reuters' forward P/E of 51.03, indicating WNS may be undervalued [5]. - The PEG ratio for WNS is 1.79, while TRI's PEG ratio is 6.17, suggesting WNS has a more favorable earnings growth outlook relative to its price [5]. - WNS's P/B ratio stands at 4.12 compared to TRI's 7.34, further supporting the notion that WNS is a better value option [6]. Earnings Outlook - WNS holds a Zacks Rank of 2 (Buy), indicating a stronger improvement in its earnings outlook compared to Thomson Reuters, which has a Zacks Rank of 3 (Hold) [3]. - Based on the combination of valuation metrics and earnings outlook, WNS is positioned as the superior value investment at this time [6].
AMRC vs. TLN: Which Stock Is the Better Value Option?
ZACKS· 2025-07-08 16:41
Core Viewpoint - The comparison between Ameresco (AMRC) and Talen Energy Corporation (TLN) indicates that Ameresco presents a better value opportunity for investors at this time due to its stronger earnings outlook and favorable valuation metrics [1][3]. Valuation Metrics - Ameresco has a forward P/E ratio of 19.04, significantly lower than Talen Energy's forward P/E of 51.78, suggesting that Ameresco is undervalued relative to Talen [5]. - The PEG ratio for Ameresco is 0.76, while Talen's PEG ratio is 9.94, indicating that Ameresco's expected earnings growth is more favorable compared to its price [5]. - Ameresco's P/B ratio stands at 0.81, in contrast to Talen's P/B ratio of 11, further supporting the notion that Ameresco is undervalued [6]. Investment Grades - Ameresco holds a Zacks Rank of 1 (Strong Buy), while Talen Energy has a Zacks Rank of 3 (Hold), reflecting a stronger improvement in earnings outlook for Ameresco [3]. - Based on the valuation figures and earnings outlook, Ameresco is rated with a Value grade of A, whereas Talen Energy has a Value grade of C, reinforcing Ameresco's position as the superior value option [6].
Is It Worth Investing in MicroStrategy (MSTR) Based on Wall Street's Bullish Views?
ZACKS· 2025-07-03 14:30
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on MicroStrategy (MSTR), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][5]. Brokerage Recommendations - MicroStrategy has an average brokerage recommendation (ABR) of 1.38, indicating a consensus between Strong Buy and Buy, based on recommendations from 13 brokerage firms [2]. - Out of the 13 recommendations, 11 are classified as Strong Buy and one as Buy, which accounts for 84.6% and 7.7% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high potential for price appreciation [5]. - Brokerage analysts tend to exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock performance compared to ABR [8][11]. - Unlike ABR, which may not be up-to-date, the Zacks Rank reflects timely changes in earnings estimates, making it a more effective tool for predicting future stock prices [12]. Current Earnings Estimates for MicroStrategy - The Zacks Consensus Estimate for MicroStrategy remains unchanged at -$15.73 for the current year, suggesting analysts have steady views on the company's earnings prospects [13]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for MicroStrategy, indicating a cautious approach despite the Buy-equivalent ABR [14].
Here's Why Paymentus (PAY) is a Strong Momentum Stock
ZACKS· 2025-04-23 14:50
Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings outlook, utilizing one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still present risks if earnings forecasts are declining [10] Company Spotlight: Paymentus (PAY) - Paymentus is rated 2 (Buy) on the Zacks Rank with a VGM Score of B, indicating strong potential for momentum investors [11] - The company has seen a 5.9% increase in shares over the past four weeks, with a consensus earnings estimate of $0.58 per share for fiscal 2025 [12] - Paymentus has an average earnings surprise of 33.3%, making it a strong candidate for investors [12]
Are Investors Undervaluing Vermilion Energy (VET) Right Now?
ZACKS· 2025-04-15 14:45
Core Viewpoint - The article emphasizes the importance of value investing and highlights Vermilion Energy (VET) as a strong candidate for value investors due to its attractive valuation metrics and earnings outlook [2][3][6]. Valuation Metrics - Vermilion Energy has a Price-to-Book (P/B) ratio of 0.46, which is significantly lower than the industry average of 0.82, indicating that the stock may be undervalued [4]. - The P/B ratio for VET has fluctuated between a high of 0.91 and a low of 0.41 over the past 12 months, with a median of 0.75 [4]. - The Price-to-Sales (P/S) ratio for VET stands at 0.67, which is slightly below the industry average of 0.70, further suggesting potential undervaluation [5]. Investment Outlook - With a Zacks Rank of 2 (Buy) and an "A" grade for Value, Vermilion Energy is positioned as one of the highest-quality value stocks currently available [3][6]. - The combination of strong valuation metrics and a positive earnings outlook makes VET an appealing option for value investors [6].