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ALIT vs. PANW: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Internet - Software sector have probably already heard of Alight, Inc. (ALIT - Free Report) and Palo Alto Networks (PANW - 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 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, Alight, Inc. is sporting a Zacks Rank of #2 (Buy), while Palo Alto Networks has a Zacks Rank of #3 (Hold). This means that ALIT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
ALIT currently has a forward P/E ratio of 14.56, while PANW has a forward P/E of 47.88. We also note that ALIT has a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PANW currently has a PEG ratio of 1.52.
Another notable valuation metric for ALIT is its P/B ratio of 1.03. 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, PANW has a P/B of 79.68.
These metrics, and several others, help ALIT earn a Value grade of B, while PANW has been given a Value grade of D.
ALIT sticks out from PANW in both our Zacks Rank and Style Scores models, so value investors will likely feel that ALIT is the better option right now.
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ALIT vs. PANW: Which Stock Is the Better Value Option?
Investors interested in stocks from the Internet - Software sector have probably already heard of Alight, Inc. (ALIT - Free Report) and Palo Alto Networks (PANW - 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 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, Alight, Inc. is sporting a Zacks Rank of #2 (Buy), while Palo Alto Networks has a Zacks Rank of #3 (Hold). This means that ALIT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
ALIT currently has a forward P/E ratio of 14.56, while PANW has a forward P/E of 47.88. We also note that ALIT has a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PANW currently has a PEG ratio of 1.52.
Another notable valuation metric for ALIT is its P/B ratio of 1.03. 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, PANW has a P/B of 79.68.
These metrics, and several others, help ALIT earn a Value grade of B, while PANW has been given a Value grade of D.
ALIT sticks out from PANW in both our Zacks Rank and Style Scores models, so value investors will likely feel that ALIT is the better option right now.