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FORR vs. PRFT: Which Stock Should Value Investors Buy Now?
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Investors interested in Computer - Services stocks are likely familiar with Forrester Research (FORR - Free Report) and Perficient (PRFT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Forrester Research and Perficient are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
FORR currently has a forward P/E ratio of 25.42, while PRFT has a forward P/E of 31.98. We also note that FORR has a PEG ratio of 1.82. 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. PRFT currently has a PEG ratio of 2.
Another notable valuation metric for FORR is its P/B ratio of 4.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PRFT has a P/B of 8.40.
These are just a few of the metrics contributing to FORR's Value grade of B and PRFT's Value grade of D.
Both FORR and PRFT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FORR is the superior value option right now.
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FORR vs. PRFT: Which Stock Should Value Investors Buy Now?
Investors interested in Computer - Services stocks are likely familiar with Forrester Research (FORR - Free Report) and Perficient (PRFT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Forrester Research and Perficient are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
FORR currently has a forward P/E ratio of 25.42, while PRFT has a forward P/E of 31.98. We also note that FORR has a PEG ratio of 1.82. 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. PRFT currently has a PEG ratio of 2.
Another notable valuation metric for FORR is its P/B ratio of 4.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PRFT has a P/B of 8.40.
These are just a few of the metrics contributing to FORR's Value grade of B and PRFT's Value grade of D.
Both FORR and PRFT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FORR is the superior value option right now.