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AYI or AMPL: 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 Acuity (AYI - Free Report) and Amplitude, Inc. (AMPL - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Acuity has a Zacks Rank of #2 (Buy), while Amplitude, Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AYI 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 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.
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.
AYI currently has a forward P/E ratio of 17.77, while AMPL has a forward P/E of 176.15. We also note that AYI has a PEG ratio of 1.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMPL currently has a PEG ratio of 4.56.
Another notable valuation metric for AYI is its P/B ratio of 4.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMPL has a P/B of 4.05.
These metrics, and several others, help AYI earn a Value grade of B, while AMPL has been given a Value grade of F.
AYI sticks out from AMPL in both our Zacks Rank and Style Scores models, so value investors will likely feel that AYI is the better option right now.
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AYI or AMPL: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Technology Services sector have probably already heard of Acuity (AYI - Free Report) and Amplitude, Inc. (AMPL - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Acuity has a Zacks Rank of #2 (Buy), while Amplitude, Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AYI 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 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.
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.
AYI currently has a forward P/E ratio of 17.77, while AMPL has a forward P/E of 176.15. We also note that AYI has a PEG ratio of 1.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMPL currently has a PEG ratio of 4.56.
Another notable valuation metric for AYI is its P/B ratio of 4.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMPL has a P/B of 4.05.
These metrics, and several others, help AYI earn a Value grade of B, while AMPL has been given a Value grade of F.
AYI sticks out from AMPL in both our Zacks Rank and Style Scores models, so value investors will likely feel that AYI is the better option right now.