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BCOR or TRI: 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 Blucora or Thomson Reuters (TRI - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Blucora has a Zacks Rank of #1 (Strong Buy), while Thomson Reuters has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that BCOR likely has seen a stronger improvement to its earnings outlook than TRI has recently. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BCOR currently has a forward P/E ratio of 14.41, while TRI has a forward P/E of 57.43. We also note that BCOR has a PEG ratio of 0.72. 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. TRI currently has a PEG ratio of 7.18.

Another notable valuation metric for BCOR is its P/B ratio of 2.29. 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, TRI has a P/B of 3.61.

These are just a few of the metrics contributing to BCOR's Value grade of B and TRI's Value grade of F.

BCOR sticks out from TRI in both our Zacks Rank and Style Scores models, so value investors will likely feel that BCOR is the better option right now.


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