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CHGG or FFIV: Which Is the Better Value Stock Right Now?
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Investors interested in Internet - Software stocks are likely familiar with Chegg (CHGG - Free Report) and F5 Networks (FFIV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Chegg and F5 Networks are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CHGG is likely seeing its earnings outlook improve to a greater extent. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CHGG currently has a forward P/E ratio of 9.13, while FFIV has a forward P/E of 13.44. We also note that CHGG has a PEG ratio of 0.74. 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. FFIV currently has a PEG ratio of 1.25.
Another notable valuation metric for CHGG is its P/B ratio of 1.14. 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, FFIV has a P/B of 3.01.
These metrics, and several others, help CHGG earn a Value grade of B, while FFIV has been given a Value grade of C.
CHGG sticks out from FFIV in both our Zacks Rank and Style Scores models, so value investors will likely feel that CHGG is the better option right now.
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CHGG or FFIV: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Software stocks are likely familiar with Chegg (CHGG - Free Report) and F5 Networks (FFIV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Chegg and F5 Networks are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CHGG is likely seeing its earnings outlook improve to a greater extent. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CHGG currently has a forward P/E ratio of 9.13, while FFIV has a forward P/E of 13.44. We also note that CHGG has a PEG ratio of 0.74. 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. FFIV currently has a PEG ratio of 1.25.
Another notable valuation metric for CHGG is its P/B ratio of 1.14. 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, FFIV has a P/B of 3.01.
These metrics, and several others, help CHGG earn a Value grade of B, while FFIV has been given a Value grade of C.
CHGG sticks out from FFIV in both our Zacks Rank and Style Scores models, so value investors will likely feel that CHGG is the better option right now.