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INFY vs. CSGP: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Computers - IT Services sector might want to consider either Infosys (INFY - Free Report) or CoStar Group (CSGP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Infosys has a Zacks Rank of #2 (Buy), while CoStar Group has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INFY is likely seeing its earnings outlook improve to a greater extent. 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.
INFY currently has a forward P/E ratio of 19.98, while CSGP has a forward P/E of 70.27. We also note that INFY has a PEG ratio of 2.14. 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. CSGP currently has a PEG ratio of 4.68.
Another notable valuation metric for INFY is its P/B ratio of 5.44. 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, CSGP has a P/B of 8.12.
Based on these metrics and many more, INFY holds a Value grade of B, while CSGP has a Value grade of F.
INFY 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 INFY is likely the superior value option right now.
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INFY vs. CSGP: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Computers - IT Services sector might want to consider either Infosys (INFY - Free Report) or CoStar Group (CSGP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Infosys has a Zacks Rank of #2 (Buy), while CoStar Group has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INFY is likely seeing its earnings outlook improve to a greater extent. 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.
INFY currently has a forward P/E ratio of 19.98, while CSGP has a forward P/E of 70.27. We also note that INFY has a PEG ratio of 2.14. 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. CSGP currently has a PEG ratio of 4.68.
Another notable valuation metric for INFY is its P/B ratio of 5.44. 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, CSGP has a P/B of 8.12.
Based on these metrics and many more, INFY holds a Value grade of B, while CSGP has a Value grade of F.
INFY 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 INFY is likely the superior value option right now.