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CHGG vs. INFA: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Internet - Software stocks have likely encountered both Chegg (CHGG - Free Report) and Informatica Inc. (INFA - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Chegg has a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CHGG likely has seen a stronger improvement to its earnings outlook than INFA has recently. However, value investors will care about much more than just this.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CHGG currently has a forward P/E ratio of 13.49, while INFA has a forward P/E of 19.46. We also note that CHGG has a PEG ratio of 1.10. 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. INFA currently has a PEG ratio of 2.15.
Another notable valuation metric for CHGG is its P/B ratio of 1.84. 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, INFA has a P/B of 2.53.
These are just a few of the metrics contributing to CHGG's Value grade of B and INFA's Value grade of C.
CHGG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CHGG is likely the superior value option right now.
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CHGG vs. INFA: Which Stock Should Value Investors Buy Now?
Investors with an interest in Internet - Software stocks have likely encountered both Chegg (CHGG - Free Report) and Informatica Inc. (INFA - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Chegg has a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CHGG likely has seen a stronger improvement to its earnings outlook than INFA has recently. However, value investors will care about much more than just this.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CHGG currently has a forward P/E ratio of 13.49, while INFA has a forward P/E of 19.46. We also note that CHGG has a PEG ratio of 1.10. 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. INFA currently has a PEG ratio of 2.15.
Another notable valuation metric for CHGG is its P/B ratio of 1.84. 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, INFA has a P/B of 2.53.
These are just a few of the metrics contributing to CHGG's Value grade of B and INFA's Value grade of C.
CHGG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CHGG is likely the superior value option right now.