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KD or TRI: Which Is the Better Value Stock Right Now?

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Investors interested in Technology Services stocks are likely familiar with Kyndryl Holdings, Inc. (KD - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.

Kyndryl Holdings, Inc. has a Zacks Rank of #2 (Buy), while Thomson Reuters has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KD has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

KD currently has a forward P/E ratio of 19.59, while TRI has a forward P/E of 43.38. We also note that KD has a PEG ratio of 3.92. 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. TRI currently has a PEG ratio of 4.04.

Another notable valuation metric for KD is its P/B ratio of 3.82. 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, TRI has a P/B of 6.36.

These are just a few of the metrics contributing to KD's Value grade of A and TRI's Value grade of D.

KD sticks out from TRI in both our Zacks Rank and Style Scores models, so value investors will likely feel that KD is the better option right now.


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