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ELV or GDRX: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical Services sector have probably already heard of Elevance Health (ELV - Free Report) and GoodRx Holdings, Inc. (GDRX - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Elevance Health and GoodRx Holdings, Inc. are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ELV currently has a forward P/E ratio of 13.42, while GDRX has a forward P/E of 22.86. We also note that ELV has a PEG ratio of 1.11. 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. GDRX currently has a PEG ratio of 2.88.
Another notable valuation metric for ELV is its P/B ratio of 2.97. 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, GDRX has a P/B of 4.06.
Based on these metrics and many more, ELV holds a Value grade of A, while GDRX has a Value grade of D.
Both ELV and GDRX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ELV is the superior value option right now.
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ELV or GDRX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical Services sector have probably already heard of Elevance Health (ELV - Free Report) and GoodRx Holdings, Inc. (GDRX - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Elevance Health and GoodRx Holdings, Inc. are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ELV currently has a forward P/E ratio of 13.42, while GDRX has a forward P/E of 22.86. We also note that ELV has a PEG ratio of 1.11. 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. GDRX currently has a PEG ratio of 2.88.
Another notable valuation metric for ELV is its P/B ratio of 2.97. 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, GDRX has a P/B of 4.06.
Based on these metrics and many more, ELV holds a Value grade of A, while GDRX has a Value grade of D.
Both ELV and GDRX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ELV is the superior value option right now.