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SIFY vs. ZS: Which Stock Should Value Investors Buy Now?
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Investors interested in Internet - Services stocks are likely familiar with Sify Technologies Limited (SIFY - Free Report) and Zscaler (ZS - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Sify Technologies Limited is sporting a Zacks Rank of #2 (Buy), while Zscaler has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SIFY has an improving earnings 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.
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.
SIFY currently has a forward P/E ratio of 30.36, while ZS has a forward P/E of 434.83. We also note that SIFY has a PEG ratio of 1.52. 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. ZS currently has a PEG ratio of 8.59.
Another notable valuation metric for SIFY is its P/B ratio of 3.40. 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, ZS has a P/B of 65.39.
These metrics, and several others, help SIFY earn a Value grade of B, while ZS has been given a Value grade of F.
SIFY stands above ZS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIFY is the superior value option right now.
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SIFY vs. ZS: Which Stock Should Value Investors Buy Now?
Investors interested in Internet - Services stocks are likely familiar with Sify Technologies Limited (SIFY - Free Report) and Zscaler (ZS - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Sify Technologies Limited is sporting a Zacks Rank of #2 (Buy), while Zscaler has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SIFY has an improving earnings 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.
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.
SIFY currently has a forward P/E ratio of 30.36, while ZS has a forward P/E of 434.83. We also note that SIFY has a PEG ratio of 1.52. 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. ZS currently has a PEG ratio of 8.59.
Another notable valuation metric for SIFY is its P/B ratio of 3.40. 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, ZS has a P/B of 65.39.
These metrics, and several others, help SIFY earn a Value grade of B, while ZS has been given a Value grade of F.
SIFY stands above ZS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIFY is the superior value option right now.