Investors with an interest in Computers - IT Services stocks have likely encountered both Amdocs (DOX - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Amdocs has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DOX likely has seen a stronger improvement to its earnings outlook than DT has recently. But this is only part of the picture for value investors.
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 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.
DOX currently has a forward P/E ratio of 15.86, while DT has a forward P/E of 50.83. We also note that DOX has a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DT currently has a PEG ratio of 5.58.
Another notable valuation metric for DOX is its P/B ratio of 3.11. 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, DT has a P/B of 9.13.
These metrics, and several others, help DOX earn a Value grade of B, while DT has been given a Value grade of F.
DOX has seen stronger estimate revision activity and sports more attractive valuation metrics than DT, so it seems like value investors will conclude that DOX is the superior option right now.
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Investors with an interest in Computers - IT Services stocks have likely encountered both Amdocs (DOX - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Amdocs has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DOX likely has seen a stronger improvement to its earnings outlook than DT has recently. But this is only part of the picture for value investors.
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 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.
DOX currently has a forward P/E ratio of 15.86, while DT has a forward P/E of 50.83. We also note that DOX has a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DT currently has a PEG ratio of 5.58.
Another notable valuation metric for DOX is its P/B ratio of 3.11. 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, DT has a P/B of 9.13.
These metrics, and several others, help DOX earn a Value grade of B, while DT has been given a Value grade of F.
DOX has seen stronger estimate revision activity and sports more attractive valuation metrics than DT, so it seems like value investors will conclude that DOX is the superior option right now.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on DOX - FREE
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