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INGM or CLMB: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Technology Services sector might want to consider either Ingram Micro (INGM - Free Report) or Climb Global Solutions (CLMB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Ingram Micro and Climb Global Solutions are holding a Zacks Rank of #1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

INGM currently has a forward P/E ratio of 7.16, while CLMB has a forward P/E of 29.19. We also note that INGM has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CLMB currently has a PEG ratio of 1.62.

Another notable valuation metric for INGM is its P/B ratio of 1.34. 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, CLMB has a P/B of 5.52.

These metrics, and several others, help INGM earn a Value grade of A, while CLMB has been given a Value grade of C.

Both INGM and CLMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that INGM is the superior value option right now.

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