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HOLX or SMLR: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Instruments stocks have likely encountered both Hologic (HOLX - Free Report) and Semler Scientific Inc. . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Hologic and Semler Scientific Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that HOLX likely has seen a stronger improvement to its earnings outlook than SMLR has recently. But this is just one factor that value investors are interested in.
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.
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.
HOLX currently has a forward P/E ratio of 10.65, while SMLR has a forward P/E of 38.88. We also note that HOLX has a PEG ratio of 0.61. 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. SMLR currently has a PEG ratio of 1.56.
Another notable valuation metric for HOLX is its P/B ratio of 7.30. 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, SMLR has a P/B of 26.49.
These metrics, and several others, help HOLX earn a Value grade of B, while SMLR has been given a Value grade of C.
HOLX 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 HOLX is likely the superior value option right now.
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HOLX or SMLR: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Instruments stocks have likely encountered both Hologic (HOLX - Free Report) and Semler Scientific Inc. . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Hologic and Semler Scientific Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that HOLX likely has seen a stronger improvement to its earnings outlook than SMLR has recently. But this is just one factor that value investors are interested in.
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.
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.
HOLX currently has a forward P/E ratio of 10.65, while SMLR has a forward P/E of 38.88. We also note that HOLX has a PEG ratio of 0.61. 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. SMLR currently has a PEG ratio of 1.56.
Another notable valuation metric for HOLX is its P/B ratio of 7.30. 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, SMLR has a P/B of 26.49.
These metrics, and several others, help HOLX earn a Value grade of B, while SMLR has been given a Value grade of C.
HOLX 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 HOLX is likely the superior value option right now.