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FORR or PRFT: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Computer - Services sector have probably already heard of 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.
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.
Both Forrester Research and Perficient have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
FORR currently has a forward P/E ratio of 32.44, while PRFT has a forward P/E of 43.70. We also note that FORR has a PEG ratio of 2.32. 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. PRFT currently has a PEG ratio of 2.43.
Another notable valuation metric for FORR is its P/B ratio of 5.60. 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, PRFT has a P/B of 11.56.
Based on these metrics and many more, FORR holds a Value grade of B, while PRFT has a 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 or PRFT: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Computer - Services sector have probably already heard of 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.
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.
Both Forrester Research and Perficient have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
FORR currently has a forward P/E ratio of 32.44, while PRFT has a forward P/E of 43.70. We also note that FORR has a PEG ratio of 2.32. 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. PRFT currently has a PEG ratio of 2.43.
Another notable valuation metric for FORR is its P/B ratio of 5.60. 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, PRFT has a P/B of 11.56.
Based on these metrics and many more, FORR holds a Value grade of B, while PRFT has a 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.