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SMGZY or CLMB: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Technology Services sector have probably already heard of Smiths Group PLC (SMGZY - Free Report) and 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 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.
Right now, Smiths Group PLC is sporting a Zacks Rank of #2 (Buy), while Climb Global Solutions has a Zacks Rank of #5 (Strong Sell). This means that SMGZY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
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.
SMGZY currently has a forward P/E ratio of 15.40, while CLMB has a forward P/E of 20.24. We also note that SMGZY has a PEG ratio of 1.62. 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 2.02.
Another notable valuation metric for SMGZY is its P/B ratio of 2.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CLMB has a P/B of 3.62.
These are just a few of the metrics contributing to SMGZY's Value grade of B and CLMB's Value grade of C.
SMGZY stands above CLMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SMGZY is the superior value option right now.
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SMGZY or CLMB: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Technology Services sector have probably already heard of Smiths Group PLC (SMGZY - Free Report) and 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 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.
Right now, Smiths Group PLC is sporting a Zacks Rank of #2 (Buy), while Climb Global Solutions has a Zacks Rank of #5 (Strong Sell). This means that SMGZY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
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.
SMGZY currently has a forward P/E ratio of 15.40, while CLMB has a forward P/E of 20.24. We also note that SMGZY has a PEG ratio of 1.62. 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 2.02.
Another notable valuation metric for SMGZY is its P/B ratio of 2.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CLMB has a P/B of 3.62.
These are just a few of the metrics contributing to SMGZY's Value grade of B and CLMB's Value grade of C.
SMGZY stands above CLMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SMGZY is the superior value option right now.