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SNX vs. WIT: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Business - Software Services stocks have likely encountered both Synnex (SNX - Free Report) and Wipro Limited (WIT - 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.
Right now, Synnex is sporting a Zacks Rank of #2 (Buy), while Wipro Limited has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SNX likely has seen a stronger improvement to its earnings outlook than WIT has recently. However, value investors will care about much more than just this.
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.
SNX currently has a forward P/E ratio of 8.62, while WIT has a forward P/E of 23.78. We also note that SNX has a PEG ratio of 0.83. 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. WIT currently has a PEG ratio of 2.64.
Another notable valuation metric for SNX is its P/B ratio of 1.18. 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, WIT has a P/B of 4.69.
Based on these metrics and many more, SNX holds a Value grade of A, while WIT has a Value grade of C.
SNX stands above WIT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.
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SNX vs. WIT: Which Stock Should Value Investors Buy Now?
Investors with an interest in Business - Software Services stocks have likely encountered both Synnex (SNX - Free Report) and Wipro Limited (WIT - 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.
Right now, Synnex is sporting a Zacks Rank of #2 (Buy), while Wipro Limited has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SNX likely has seen a stronger improvement to its earnings outlook than WIT has recently. However, value investors will care about much more than just this.
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.
SNX currently has a forward P/E ratio of 8.62, while WIT has a forward P/E of 23.78. We also note that SNX has a PEG ratio of 0.83. 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. WIT currently has a PEG ratio of 2.64.
Another notable valuation metric for SNX is its P/B ratio of 1.18. 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, WIT has a P/B of 4.69.
Based on these metrics and many more, SNX holds a Value grade of A, while WIT has a Value grade of C.
SNX stands above WIT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.