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SPXC vs. TRI: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of SPX Technologies (SPXC - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Right now, SPX Technologies is sporting a Zacks Rank of #2 (Buy), while Thomson Reuters has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SPXC has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
SPXC currently has a forward P/E ratio of 20.51, while TRI has a forward P/E of 40.34. We also note that SPXC has a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TRI currently has a PEG ratio of 3.70.
Another notable valuation metric for SPXC is its P/B ratio of 3.90. 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 6.02.
Based on these metrics and many more, SPXC holds a Value grade of B, while TRI has a Value grade of D.
SPXC stands above TRI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SPXC is the superior value option right now.
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SPXC vs. TRI: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of SPX Technologies (SPXC - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Right now, SPX Technologies is sporting a Zacks Rank of #2 (Buy), while Thomson Reuters has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SPXC has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
SPXC currently has a forward P/E ratio of 20.51, while TRI has a forward P/E of 40.34. We also note that SPXC has a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TRI currently has a PEG ratio of 3.70.
Another notable valuation metric for SPXC is its P/B ratio of 3.90. 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 6.02.
Based on these metrics and many more, SPXC holds a Value grade of B, while TRI has a Value grade of D.
SPXC stands above TRI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SPXC is the superior value option right now.