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SPXC or TRI: Which Is the Better Value Stock Right Now?
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Investors with an interest in Technology Services stocks have likely encountered both SPX Technologies (SPXC - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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, both SPX Technologies and Thomson Reuters are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
SPXC currently has a forward P/E ratio of 22.33, while TRI has a forward P/E of 40.83. We also note that SPXC has a PEG ratio of 1.24. 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. TRI currently has a PEG ratio of 3.67.
Another notable valuation metric for SPXC is its P/B ratio of 3.82. 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, TRI has a P/B of 5.71.
These metrics, and several others, help SPXC earn a Value grade of B, while TRI has been given a Value grade of C.
Both SPXC and TRI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPXC is the superior value option right now.
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SPXC or TRI: Which Is the Better Value Stock Right Now?
Investors with an interest in Technology Services stocks have likely encountered both SPX Technologies (SPXC - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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, both SPX Technologies and Thomson Reuters are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
SPXC currently has a forward P/E ratio of 22.33, while TRI has a forward P/E of 40.83. We also note that SPXC has a PEG ratio of 1.24. 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. TRI currently has a PEG ratio of 3.67.
Another notable valuation metric for SPXC is its P/B ratio of 3.82. 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, TRI has a P/B of 5.71.
These metrics, and several others, help SPXC earn a Value grade of B, while TRI has been given a Value grade of C.
Both SPXC and TRI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPXC is the superior value option right now.