Investors interested in Business - Services stocks are likely familiar with WNS Holdings Limited (WNS - Free Report) and Viad (VVI - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, WNS Holdings Limited has a Zacks Rank of #2 (Buy), while Viad has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that WNS likely has seen a stronger improvement to its earnings outlook than VVI has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WNS currently has a forward P/E ratio of 21.12, while VVI has a forward P/E of 75.36. We also note that WNS has a PEG ratio of 1.67. 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. VVI currently has a PEG ratio of 5.02.
Another notable valuation metric for WNS is its P/B ratio of 5.02. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VVI has a P/B of 8.34.
These metrics, and several others, help WNS earn a Value grade of B, while VVI has been given a Value grade of D.
WNS 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 WNS is likely the superior value option right now.
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Investors interested in Business - Services stocks are likely familiar with WNS Holdings Limited (WNS - Free Report) and Viad (VVI - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, WNS Holdings Limited has a Zacks Rank of #2 (Buy), while Viad has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that WNS likely has seen a stronger improvement to its earnings outlook than VVI has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WNS currently has a forward P/E ratio of 21.12, while VVI has a forward P/E of 75.36. We also note that WNS has a PEG ratio of 1.67. 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. VVI currently has a PEG ratio of 5.02.
Another notable valuation metric for WNS is its P/B ratio of 5.02. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VVI has a P/B of 8.34.
These metrics, and several others, help WNS earn a Value grade of B, while VVI has been given a Value grade of D.
WNS 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 WNS is likely the superior value option right now.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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