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CNXC or HHR: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Business - Services sector have probably already heard of Concentrix Corporation (CNXC - Free Report) and HeadHunter Group PLC Sponsored ADR (HHR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, Concentrix Corporation is sporting a Zacks Rank of #2 (Buy), while HeadHunter Group PLC Sponsored ADR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CNXC likely has seen a stronger improvement to its earnings outlook than HHR 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CNXC currently has a forward P/E ratio of 18.69, while HHR has a forward P/E of 41.70. We also note that CNXC has a PEG ratio of 0.89. 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. HHR currently has a PEG ratio of 1.47.
Another notable valuation metric for CNXC is its P/B ratio of 3.74. 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, HHR has a P/B of 53.89.
Based on these metrics and many more, CNXC holds a Value grade of B, while HHR has a Value grade of C.
CNXC sticks out from HHR in both our Zacks Rank and Style Scores models, so value investors will likely feel that CNXC is the better option right now.
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CNXC or HHR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Business - Services sector have probably already heard of Concentrix Corporation (CNXC - Free Report) and HeadHunter Group PLC Sponsored ADR (HHR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, Concentrix Corporation is sporting a Zacks Rank of #2 (Buy), while HeadHunter Group PLC Sponsored ADR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CNXC likely has seen a stronger improvement to its earnings outlook than HHR 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CNXC currently has a forward P/E ratio of 18.69, while HHR has a forward P/E of 41.70. We also note that CNXC has a PEG ratio of 0.89. 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. HHR currently has a PEG ratio of 1.47.
Another notable valuation metric for CNXC is its P/B ratio of 3.74. 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, HHR has a P/B of 53.89.
Based on these metrics and many more, CNXC holds a Value grade of B, while HHR has a Value grade of C.
CNXC sticks out from HHR in both our Zacks Rank and Style Scores models, so value investors will likely feel that CNXC is the better option right now.