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DTC or EXPE: Which Is the Better Value Stock Right Now?
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Investors with an interest in Internet - Commerce stocks have likely encountered both Solo Brands, Inc. (DTC - Free Report) and Expedia (EXPE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Solo Brands, Inc. and Expedia are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DTC has an improving earnings outlook. However, value investors will care about much more than just this.
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.
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.
DTC currently has a forward P/E ratio of 8.88, while EXPE has a forward P/E of 24.95. We also note that DTC has a PEG ratio of 0.26. 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. EXPE currently has a PEG ratio of 1.49.
Another notable valuation metric for DTC is its P/B ratio of 2.17. 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, EXPE has a P/B of 8.71.
These metrics, and several others, help DTC earn a Value grade of B, while EXPE has been given a Value grade of C.
DTC sticks out from EXPE in both our Zacks Rank and Style Scores models, so value investors will likely feel that DTC is the better option right now.
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DTC or EXPE: Which Is the Better Value Stock Right Now?
Investors with an interest in Internet - Commerce stocks have likely encountered both Solo Brands, Inc. (DTC - Free Report) and Expedia (EXPE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Solo Brands, Inc. and Expedia are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DTC has an improving earnings outlook. However, value investors will care about much more than just this.
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.
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.
DTC currently has a forward P/E ratio of 8.88, while EXPE has a forward P/E of 24.95. We also note that DTC has a PEG ratio of 0.26. 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. EXPE currently has a PEG ratio of 1.49.
Another notable valuation metric for DTC is its P/B ratio of 2.17. 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, EXPE has a P/B of 8.71.
These metrics, and several others, help DTC earn a Value grade of B, while EXPE has been given a Value grade of C.
DTC sticks out from EXPE in both our Zacks Rank and Style Scores models, so value investors will likely feel that DTC is the better option right now.