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SYF or RCM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Synchrony (SYF - Free Report) and R1 RCM Inc. (RCM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Synchrony has a Zacks Rank of #2 (Buy), while R1 RCM Inc. has a Zacks Rank of #3 (Hold) right now. This means that SYF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SYF currently has a forward P/E ratio of 7.95, while RCM has a forward P/E of 116.83. We also note that SYF has a PEG ratio of 0.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RCM currently has a PEG ratio of 9.74.
Another notable valuation metric for SYF is its P/B ratio of 1.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RCM has a P/B of 37.03.
These are just a few of the metrics contributing to SYF's Value grade of A and RCM's Value grade of D.
SYF is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SYF is likely the superior value option right now.
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SYF or RCM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Synchrony (SYF - Free Report) and R1 RCM Inc. (RCM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Synchrony has a Zacks Rank of #2 (Buy), while R1 RCM Inc. has a Zacks Rank of #3 (Hold) right now. This means that SYF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SYF currently has a forward P/E ratio of 7.95, while RCM has a forward P/E of 116.83. We also note that SYF has a PEG ratio of 0.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RCM currently has a PEG ratio of 9.74.
Another notable valuation metric for SYF is its P/B ratio of 1.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RCM has a P/B of 37.03.
These are just a few of the metrics contributing to SYF's Value grade of A and RCM's Value grade of D.
SYF is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SYF is likely the superior value option right now.