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GPX vs. TAL: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Schools sector have probably already heard of GP Strategies and TAL Education (TAL - 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.

GP Strategies has a Zacks Rank of #2 (Buy), while TAL Education has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that GPX likely has seen a stronger improvement to its earnings outlook than TAL has recently. However, value investors will care about much more than just this.

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.

GPX currently has a forward P/E ratio of 15.25, while TAL has a forward P/E of 75.82. We also note that GPX has a PEG ratio of 1.02. 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. TAL currently has a PEG ratio of 2.29.

Another notable valuation metric for GPX is its P/B ratio of 1.21. 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, TAL has a P/B of 6.12.

Based on these metrics and many more, GPX holds a Value grade of A, while TAL has a Value grade of C.

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


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