We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SSTK vs. ABNB: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors with an interest in Internet - Content stocks have likely encountered both Shutterstock (SSTK - Free Report) and Airbnb, Inc. (ABNB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Shutterstock has a Zacks Rank of #2 (Buy), while Airbnb, Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SSTK has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
SSTK currently has a forward P/E ratio of 16.83, while ABNB has a forward P/E of 56.81. We also note that SSTK has a PEG ratio of 2.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABNB currently has a PEG ratio of 3.05.
Another notable valuation metric for SSTK is its P/B ratio of 4.90. 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, ABNB has a P/B of 14.11.
Based on these metrics and many more, SSTK holds a Value grade of B, while ABNB has a Value grade of D.
SSTK has seen stronger estimate revision activity and sports more attractive valuation metrics than ABNB, so it seems like value investors will conclude that SSTK is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SSTK vs. ABNB: Which Stock Should Value Investors Buy Now?
Investors with an interest in Internet - Content stocks have likely encountered both Shutterstock (SSTK - Free Report) and Airbnb, Inc. (ABNB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Shutterstock has a Zacks Rank of #2 (Buy), while Airbnb, Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SSTK has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
SSTK currently has a forward P/E ratio of 16.83, while ABNB has a forward P/E of 56.81. We also note that SSTK has a PEG ratio of 2.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABNB currently has a PEG ratio of 3.05.
Another notable valuation metric for SSTK is its P/B ratio of 4.90. 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, ABNB has a P/B of 14.11.
Based on these metrics and many more, SSTK holds a Value grade of B, while ABNB has a Value grade of D.
SSTK has seen stronger estimate revision activity and sports more attractive valuation metrics than ABNB, so it seems like value investors will conclude that SSTK is the superior option right now.