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FUTU or CLMB: Which Is the Better Value Stock Right Now?
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Investors interested in Technology Services stocks are likely familiar with Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Climb Global Solutions (CLMB - 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 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 means that FUTU's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
FUTU currently has a forward P/E ratio of 12.16, while CLMB has a forward P/E of 23.60. We also note that FUTU has a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CLMB currently has a PEG ratio of 2.36.
Another notable valuation metric for FUTU is its P/B ratio of 2.68. 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 4.22.
Based on these metrics and many more, FUTU holds a Value grade of B, while CLMB has 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 interested in Technology Services stocks are likely familiar with Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Climb Global Solutions (CLMB - 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 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 means that FUTU's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
FUTU currently has a forward P/E ratio of 12.16, while CLMB has a forward P/E of 23.60. We also note that FUTU has a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CLMB currently has a PEG ratio of 2.36.
Another notable valuation metric for FUTU is its P/B ratio of 2.68. 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 4.22.
Based on these metrics and many more, FUTU holds a Value grade of B, while CLMB has 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.