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LYFT vs. SHOP: Which Stock Should Value Investors Buy Now?
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Investors interested in Internet - Services stocks are likely familiar with Lyft (LYFT - Free Report) and Shopify (SHOP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Lyft has a Zacks Rank of #2 (Buy), while Shopify has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LYFT has an improving earnings outlook. 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 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.
LYFT currently has a forward P/E ratio of 12.45, while SHOP has a forward P/E of 104.23. We also note that LYFT has a PEG ratio of 0.67. 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. SHOP currently has a PEG ratio of 5.29.
Another notable valuation metric for LYFT is its P/B ratio of 8.32. 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, SHOP has a P/B of 16.06.
These are just a few of the metrics contributing to LYFT's Value grade of B and SHOP's Value grade of F.
LYFT 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 LYFT is likely the superior value option right now.
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LYFT vs. SHOP: Which Stock Should Value Investors Buy Now?
Investors interested in Internet - Services stocks are likely familiar with Lyft (LYFT - Free Report) and Shopify (SHOP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Lyft has a Zacks Rank of #2 (Buy), while Shopify has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LYFT has an improving earnings outlook. 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 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.
LYFT currently has a forward P/E ratio of 12.45, while SHOP has a forward P/E of 104.23. We also note that LYFT has a PEG ratio of 0.67. 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. SHOP currently has a PEG ratio of 5.29.
Another notable valuation metric for LYFT is its P/B ratio of 8.32. 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, SHOP has a P/B of 16.06.
These are just a few of the metrics contributing to LYFT's Value grade of B and SHOP's Value grade of F.
LYFT 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 LYFT is likely the superior value option right now.