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BCOR vs. TIXT: Which Stock Should Value Investors Buy Now?
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Investors interested in Technology Services stocks are likely familiar with Blucora and Telus International (TIXT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Blucora has a Zacks Rank of #2 (Buy), while Telus International has a Zacks Rank of #3 (Hold). This means that BCOR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BCOR currently has a forward P/E ratio of 10.22, while TIXT has a forward P/E of 32.26. We also note that BCOR has a PEG ratio of 0.68. 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. TIXT currently has a PEG ratio of 1.27.
Another notable valuation metric for BCOR is its P/B ratio of 2.28. 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, TIXT has a P/B of 5.
These metrics, and several others, help BCOR earn a Value grade of B, while TIXT has been given a Value grade of C.
BCOR stands above TIXT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BCOR is the superior value option right now.
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BCOR vs. TIXT: Which Stock Should Value Investors Buy Now?
Investors interested in Technology Services stocks are likely familiar with Blucora and Telus International (TIXT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Blucora has a Zacks Rank of #2 (Buy), while Telus International has a Zacks Rank of #3 (Hold). This means that BCOR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BCOR currently has a forward P/E ratio of 10.22, while TIXT has a forward P/E of 32.26. We also note that BCOR has a PEG ratio of 0.68. 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. TIXT currently has a PEG ratio of 1.27.
Another notable valuation metric for BCOR is its P/B ratio of 2.28. 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, TIXT has a P/B of 5.
These metrics, and several others, help BCOR earn a Value grade of B, while TIXT has been given a Value grade of C.
BCOR stands above TIXT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BCOR is the superior value option right now.