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PRDO or PWSC: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Schools sector have probably already heard of Perdoceo Education (PRDO - Free Report) and PowerSchool Holdings (PWSC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Perdoceo Education and PowerSchool Holdings 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 PRDO has an improving earnings outlook. But this is only part of the picture 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.
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.
PRDO currently has a forward P/E ratio of 8.42, while PWSC has a forward P/E of 22.22. We also note that PRDO has a PEG ratio of 0.56. 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. PWSC currently has a PEG ratio of 2.33.
Another notable valuation metric for PRDO is its P/B ratio of 1.21. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PWSC has a P/B of 1.94.
Based on these metrics and many more, PRDO holds a Value grade of A, while PWSC has a Value grade of D.
PRDO stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PRDO is the superior value option right now.
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PRDO or PWSC: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Schools sector have probably already heard of Perdoceo Education (PRDO - Free Report) and PowerSchool Holdings (PWSC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Perdoceo Education and PowerSchool Holdings 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 PRDO has an improving earnings outlook. But this is only part of the picture 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.
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.
PRDO currently has a forward P/E ratio of 8.42, while PWSC has a forward P/E of 22.22. We also note that PRDO has a PEG ratio of 0.56. 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. PWSC currently has a PEG ratio of 2.33.
Another notable valuation metric for PRDO is its P/B ratio of 1.21. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PWSC has a P/B of 1.94.
Based on these metrics and many more, PRDO holds a Value grade of A, while PWSC has a Value grade of D.
PRDO stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PRDO is the superior value option right now.