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FUTU or CLMB: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Technology Services sector might want to consider either Futu Holdings Limited Sponsored ADR (FUTU - Free Report) or Climb Global Solutions (CLMB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Futu Holdings Limited Sponsored ADR has a Zacks Rank of #2 (Buy), while Climb Global Solutions has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FUTU is likely seeing its earnings outlook improve to a greater extent. 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.
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.
FUTU currently has a forward P/E ratio of 12.35, while CLMB has a forward P/E of 23.35. We also note that FUTU has a PEG ratio of 0.62. 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. CLMB currently has a PEG ratio of 2.34.
Another notable valuation metric for FUTU is its P/B ratio of 2.72. 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, CLMB has a P/B of 4.18.
These metrics, and several others, help FUTU earn a Value grade of B, while CLMB has been given a Value grade of C.
FUTU has seen stronger estimate revision activity and sports more attractive valuation metrics than CLMB, so it seems like value investors will conclude that FUTU is the superior option right now.
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FUTU or CLMB: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either Futu Holdings Limited Sponsored ADR (FUTU - Free Report) or Climb Global Solutions (CLMB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Futu Holdings Limited Sponsored ADR has a Zacks Rank of #2 (Buy), while Climb Global Solutions has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FUTU is likely seeing its earnings outlook improve to a greater extent. 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.
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.
FUTU currently has a forward P/E ratio of 12.35, while CLMB has a forward P/E of 23.35. We also note that FUTU has a PEG ratio of 0.62. 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. CLMB currently has a PEG ratio of 2.34.
Another notable valuation metric for FUTU is its P/B ratio of 2.72. 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, CLMB has a P/B of 4.18.
These metrics, and several others, help FUTU earn a Value grade of B, while CLMB has been given a Value grade of C.
FUTU has seen stronger estimate revision activity and sports more attractive valuation metrics than CLMB, so it seems like value investors will conclude that FUTU is the superior option right now.