We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AFYA or LRN: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors with an interest in Schools stocks have likely encountered both Afya (AFYA - Free Report) and K12 (LRN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Afya is sporting a Zacks Rank of #1 (Strong Buy), while K12 has a Zacks Rank of #2 (Buy). This means that AFYA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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.
AFYA currently has a forward P/E ratio of 10.86, while LRN has a forward P/E of 20.74. We also note that AFYA has a PEG ratio of 0.58. 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. LRN currently has a PEG ratio of 1.04.
Another notable valuation metric for AFYA is its P/B ratio of 2.16. 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, LRN has a P/B of 4.52.
These are just a few of the metrics contributing to AFYA's Value grade of A and LRN's Value grade of C.
AFYA stands above LRN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AFYA is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AFYA or LRN: Which Is the Better Value Stock Right Now?
Investors with an interest in Schools stocks have likely encountered both Afya (AFYA - Free Report) and K12 (LRN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Afya is sporting a Zacks Rank of #1 (Strong Buy), while K12 has a Zacks Rank of #2 (Buy). This means that AFYA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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.
AFYA currently has a forward P/E ratio of 10.86, while LRN has a forward P/E of 20.74. We also note that AFYA has a PEG ratio of 0.58. 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. LRN currently has a PEG ratio of 1.04.
Another notable valuation metric for AFYA is its P/B ratio of 2.16. 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, LRN has a P/B of 4.52.
These are just a few of the metrics contributing to AFYA's Value grade of A and LRN's Value grade of C.
AFYA stands above LRN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AFYA is the superior value option right now.