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ASGN vs. EPAM: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Computers - IT Services stocks have likely encountered both ASGN Inc (ASGN - Free Report) and Epam (EPAM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

ASGN Inc and Epam are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

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.

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.

ASGN currently has a forward P/E ratio of 21.51, while EPAM has a forward P/E of 74.65. We also note that ASGN has a PEG ratio of 1.76. 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. EPAM currently has a PEG ratio of 2.82.

Another notable valuation metric for ASGN is its P/B ratio of 3.43. 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, EPAM has a P/B of 15.99.

These are just a few of the metrics contributing to ASGN's Value grade of B and EPAM's Value grade of F.

Both ASGN and EPAM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASGN is the superior value option right now.


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