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Are Investors Undervaluing Bumble (BMBL) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Bumble (BMBL - Free Report) . BMBL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.25 right now. For comparison, its industry sports an average P/E of 33.18. Over the past 52 weeks, BMBL's Forward P/E has been as high as 54.15 and as low as 12.93, with a median of 29.05.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BMBL has a P/S ratio of 1.27. This compares to its industry's average P/S of 3.1.
If you're looking for another solid Internet - Software value stock, take a look at Chegg (CHGG - Free Report) . CHGG is a # 2 (Buy) stock with a Value score of A.
Shares of Chegg currently holds a Forward P/E ratio of 6.40, and its PEG ratio is 0.32. In comparison, its industry sports average P/E and PEG ratios of 33.18 and 1.78.
CHGG's price-to-earnings ratio has been as high as 14.51 and as low as 6.14, with a median of 8.56, while its PEG ratio has been as high as 1.18 and as low as 0.31, with a median of 0.64, all within the past year.
Furthermore, Chegg holds a P/B ratio of 0.77 and its industry's price-to-book ratio is 2.95. CHGG's P/B has been as high as 2.18, as low as 0.74, with a median of 1.11 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bumble and Chegg are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMBL and CHGG feels like a great value stock at the moment.
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Are Investors Undervaluing Bumble (BMBL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Bumble (BMBL - Free Report) . BMBL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.25 right now. For comparison, its industry sports an average P/E of 33.18. Over the past 52 weeks, BMBL's Forward P/E has been as high as 54.15 and as low as 12.93, with a median of 29.05.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BMBL has a P/S ratio of 1.27. This compares to its industry's average P/S of 3.1.
If you're looking for another solid Internet - Software value stock, take a look at Chegg (CHGG - Free Report) . CHGG is a # 2 (Buy) stock with a Value score of A.
Shares of Chegg currently holds a Forward P/E ratio of 6.40, and its PEG ratio is 0.32. In comparison, its industry sports average P/E and PEG ratios of 33.18 and 1.78.
CHGG's price-to-earnings ratio has been as high as 14.51 and as low as 6.14, with a median of 8.56, while its PEG ratio has been as high as 1.18 and as low as 0.31, with a median of 0.64, all within the past year.
Furthermore, Chegg holds a P/B ratio of 0.77 and its industry's price-to-book ratio is 2.95. CHGG's P/B has been as high as 2.18, as low as 0.74, with a median of 1.11 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bumble and Chegg are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMBL and CHGG feels like a great value stock at the moment.