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FUTU or TIXT: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Technology Services sector might want to consider either Futu Holdings Limited Sponsored ADR (FUTU - Free Report) or Telus International (TIXT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Futu Holdings Limited Sponsored ADR has a Zacks Rank of #2 (Buy), while Telus International has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FUTU has an improving earnings outlook. However, value investors will care about much more than just this.
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.
FUTU currently has a forward P/E ratio of 15.07, while TIXT has a forward P/E of 21.03. We also note that FUTU has a PEG ratio of 0.84. 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. TIXT currently has a PEG ratio of 1.32.
Another notable valuation metric for FUTU is its P/B ratio of 2.04. 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, TIXT has a P/B of 3.93.
These are just a few of the metrics contributing to FUTU's Value grade of B and TIXT's Value grade of C.
FUTU has seen stronger estimate revision activity and sports more attractive valuation metrics than TIXT, so it seems like value investors will conclude that FUTU is the superior option right now.
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FUTU or TIXT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either Futu Holdings Limited Sponsored ADR (FUTU - Free Report) or Telus International (TIXT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Futu Holdings Limited Sponsored ADR has a Zacks Rank of #2 (Buy), while Telus International has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FUTU has an improving earnings outlook. However, value investors will care about much more than just this.
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.
FUTU currently has a forward P/E ratio of 15.07, while TIXT has a forward P/E of 21.03. We also note that FUTU has a PEG ratio of 0.84. 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. TIXT currently has a PEG ratio of 1.32.
Another notable valuation metric for FUTU is its P/B ratio of 2.04. 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, TIXT has a P/B of 3.93.
These are just a few of the metrics contributing to FUTU's Value grade of B and TIXT's Value grade of C.
FUTU has seen stronger estimate revision activity and sports more attractive valuation metrics than TIXT, so it seems like value investors will conclude that FUTU is the superior option right now.