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FUTU or SPXC: 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 SPX Technologies (SPXC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Futu Holdings Limited Sponsored ADR has a Zacks Rank of #1 (Strong Buy), while SPX Technologies has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FUTU is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

FUTU currently has a forward P/E ratio of 20.66, while SPXC has a forward P/E of 27.56. We also note that FUTU has a PEG ratio of 1.16. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SPXC currently has a PEG ratio of 1.53.

Another notable valuation metric for FUTU is its P/B ratio of 5.25. 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, SPXC has a P/B of 5.64.

These are just a few of the metrics contributing to FUTU's Value grade of B and SPXC's Value grade of C.

FUTU stands above SPXC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FUTU is the superior value option right now.


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