We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PERI or RELX: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors with an interest in Internet - Content stocks have likely encountered both Perion Network (PERI - Free Report) and RELX PLC (RELX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Perion Network has a Zacks Rank of #2 (Buy), while RELX PLC has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that PERI likely has seen a stronger improvement to its earnings outlook than RELX has recently. 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 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.
PERI currently has a forward P/E ratio of 8.73, while RELX has a forward P/E of 26.34. We also note that PERI has a PEG ratio of 0.40. 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. RELX currently has a PEG ratio of 2.41.
Another notable valuation metric for PERI is its P/B ratio of 1.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RELX has a P/B of 16.57.
Based on these metrics and many more, PERI holds a Value grade of A, while RELX has a Value grade of D.
PERI 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 PERI is likely the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PERI or RELX: Which Is the Better Value Stock Right Now?
Investors with an interest in Internet - Content stocks have likely encountered both Perion Network (PERI - Free Report) and RELX PLC (RELX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Perion Network has a Zacks Rank of #2 (Buy), while RELX PLC has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that PERI likely has seen a stronger improvement to its earnings outlook than RELX has recently. 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 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.
PERI currently has a forward P/E ratio of 8.73, while RELX has a forward P/E of 26.34. We also note that PERI has a PEG ratio of 0.40. 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. RELX currently has a PEG ratio of 2.41.
Another notable valuation metric for PERI is its P/B ratio of 1.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RELX has a P/B of 16.57.
Based on these metrics and many more, PERI holds a Value grade of A, while RELX has a Value grade of D.
PERI 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 PERI is likely the superior value option right now.