Back to top

Image: Bigstock

CLGX or IT: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Consulting Services sector might want to consider either CoreLogic or Gartner (IT - 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.

Right now, CoreLogic is sporting a Zacks Rank of #2 (Buy), while Gartner has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CLGX has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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 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.

CLGX currently has a forward P/E ratio of 22.65, while IT has a forward P/E of 39.72. We also note that CLGX has a PEG ratio of 1.89. 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. IT currently has a PEG ratio of 3.97.

Another notable valuation metric for CLGX is its P/B ratio of 5.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IT has a P/B of 12.17.

These are just a few of the metrics contributing to CLGX's Value grade of B and IT's Value grade of D.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gartner, Inc. (IT) - free report >>

Published in