We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CHGG vs. INFA: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Internet - Software stocks are likely familiar with Chegg (CHGG - Free Report) and Informatica Inc. (INFA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Chegg has a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CHGG likely has seen a stronger improvement to its earnings outlook than INFA has recently. But this is only part of the picture for value investors.
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.
CHGG currently has a forward P/E ratio of 6.47, while INFA has a forward P/E of 29.07. We also note that CHGG has a PEG ratio of 0.32. 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. INFA currently has a PEG ratio of 3.49.
Another notable valuation metric for CHGG is its P/B ratio of 0.87. 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, INFA has a P/B of 4.89.
These are just a few of the metrics contributing to CHGG's Value grade of A and INFA's Value grade of F.
CHGG stands above INFA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHGG is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CHGG vs. INFA: Which Stock Is the Better Value Option?
Investors interested in Internet - Software stocks are likely familiar with Chegg (CHGG - Free Report) and Informatica Inc. (INFA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Chegg has a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CHGG likely has seen a stronger improvement to its earnings outlook than INFA has recently. But this is only part of the picture for value investors.
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.
CHGG currently has a forward P/E ratio of 6.47, while INFA has a forward P/E of 29.07. We also note that CHGG has a PEG ratio of 0.32. 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. INFA currently has a PEG ratio of 3.49.
Another notable valuation metric for CHGG is its P/B ratio of 0.87. 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, INFA has a P/B of 4.89.
These are just a few of the metrics contributing to CHGG's Value grade of A and INFA's Value grade of F.
CHGG stands above INFA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHGG is the superior value option right now.