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LRN or PWSC: Which Is the Better Value Stock Right Now?
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Investors interested in Schools stocks are likely familiar with K12 (LRN - Free Report) and PowerSchool Holdings (PWSC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
K12 has a Zacks Rank of #2 (Buy), while PowerSchool Holdings has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that LRN likely has seen a stronger improvement to its earnings outlook than PWSC has recently. 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.
LRN currently has a forward P/E ratio of 13.50, while PWSC has a forward P/E of 52.67. We also note that LRN has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PWSC currently has a PEG ratio of 15.27.
Another notable valuation metric for LRN is its P/B ratio of 1.89. 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, PWSC has a P/B of 1.98.
Based on these metrics and many more, LRN holds a Value grade of A, while PWSC has a Value grade of F.
LRN stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LRN is the superior value option right now.
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LRN or PWSC: Which Is the Better Value Stock Right Now?
Investors interested in Schools stocks are likely familiar with K12 (LRN - Free Report) and PowerSchool Holdings (PWSC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
K12 has a Zacks Rank of #2 (Buy), while PowerSchool Holdings has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that LRN likely has seen a stronger improvement to its earnings outlook than PWSC has recently. 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.
LRN currently has a forward P/E ratio of 13.50, while PWSC has a forward P/E of 52.67. We also note that LRN has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PWSC currently has a PEG ratio of 15.27.
Another notable valuation metric for LRN is its P/B ratio of 1.89. 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, PWSC has a P/B of 1.98.
Based on these metrics and many more, LRN holds a Value grade of A, while PWSC has a Value grade of F.
LRN stands above PWSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LRN is the superior value option right now.