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OGN or DOCS: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical Services sector might want to consider either Organon (OGN - Free Report) or Doximity (DOCS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Organon and Doximity are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that OGN'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 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OGN currently has a forward P/E ratio of 2.83, while DOCS has a forward P/E of 48.14. We also note that OGN has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DOCS currently has a PEG ratio of 5.22.
Another notable valuation metric for OGN is its P/B ratio of 4.82. 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, DOCS has a P/B of 9.76.
Based on these metrics and many more, OGN holds a Value grade of A, while DOCS has a Value grade of D.
OGN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OGN is likely the superior value option right now.
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OGN or DOCS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical Services sector might want to consider either Organon (OGN - Free Report) or Doximity (DOCS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Organon and Doximity are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that OGN'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 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OGN currently has a forward P/E ratio of 2.83, while DOCS has a forward P/E of 48.14. We also note that OGN has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DOCS currently has a PEG ratio of 5.22.
Another notable valuation metric for OGN is its P/B ratio of 4.82. 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, DOCS has a P/B of 9.76.
Based on these metrics and many more, OGN holds a Value grade of A, while DOCS has a Value grade of D.
OGN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OGN is likely the superior value option right now.