Investors interested in Internet - Commerce stocks are likely familiar with Expedia (EXPE - Free Report) and Zalando (ZLNDY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Expedia has a Zacks Rank of #1 (Strong Buy), while Zalando has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that EXPE likely has seen a stronger improvement to its earnings outlook than ZLNDY has recently. But this is only part of the picture for value investors.
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.
EXPE currently has a forward P/E ratio of 11.93, while ZLNDY has a forward P/E of 84. We also note that EXPE has a PEG ratio of 0.85. 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. ZLNDY currently has a PEG ratio of 8.93.
Another notable valuation metric for EXPE is its P/B ratio of 4.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZLNDY has a P/B of 5.60.
These are just a few of the metrics contributing to EXPE's Value grade of B and ZLNDY's Value grade of D.
EXPE has seen stronger estimate revision activity and sports more attractive valuation metrics than ZLNDY, so it seems like value investors will conclude that EXPE is the superior option right now.
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Investors interested in Internet - Commerce stocks are likely familiar with Expedia (EXPE - Free Report) and Zalando (ZLNDY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Expedia has a Zacks Rank of #1 (Strong Buy), while Zalando has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that EXPE likely has seen a stronger improvement to its earnings outlook than ZLNDY has recently. But this is only part of the picture for value investors.
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.
EXPE currently has a forward P/E ratio of 11.93, while ZLNDY has a forward P/E of 84. We also note that EXPE has a PEG ratio of 0.85. 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. ZLNDY currently has a PEG ratio of 8.93.
Another notable valuation metric for EXPE is its P/B ratio of 4.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZLNDY has a P/B of 5.60.
These are just a few of the metrics contributing to EXPE's Value grade of B and ZLNDY's Value grade of D.
EXPE has seen stronger estimate revision activity and sports more attractive valuation metrics than ZLNDY, so it seems like value investors will conclude that EXPE is the superior option right now.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
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