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COHR or APP: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Technology Services sector might want to consider either Coherent (COHR - Free Report) or AppLovin (APP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Coherent and AppLovin are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
COHR currently has a forward P/E ratio of 19.07, while APP has a forward P/E of 81.01. We also note that COHR has a PEG ratio of 3.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. APP currently has a PEG ratio of 4.05.
Another notable valuation metric for COHR is its P/B ratio of 1.33. 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, APP has a P/B of 5.50.
These metrics, and several others, help COHR earn a Value grade of B, while APP has been given a Value grade of C.
Both COHR and APP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that COHR is the superior value option right now.
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COHR or APP: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either Coherent (COHR - Free Report) or AppLovin (APP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Coherent and AppLovin are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
COHR currently has a forward P/E ratio of 19.07, while APP has a forward P/E of 81.01. We also note that COHR has a PEG ratio of 3.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. APP currently has a PEG ratio of 4.05.
Another notable valuation metric for COHR is its P/B ratio of 1.33. 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, APP has a P/B of 5.50.
These metrics, and several others, help COHR earn a Value grade of B, while APP has been given a Value grade of C.
Both COHR and APP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that COHR is the superior value option right now.