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.
VRT or EPAM: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors with an interest in Computers - IT Services stocks have likely encountered both Vertiv Holdings Co. (VRT - Free Report) and Epam (EPAM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Vertiv Holdings Co. has a Zacks Rank of #1 (Strong Buy), while Epam has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that VRT likely has seen a stronger improvement to its earnings outlook than EPAM has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
VRT currently has a forward P/E ratio of 12.91, while EPAM has a forward P/E of 22.02. We also note that VRT has a PEG ratio of 0.32. 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. EPAM currently has a PEG ratio of 1.86.
Another notable valuation metric for VRT is its P/B ratio of 3.91. 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, EPAM has a P/B of 4.40.
Based on these metrics and many more, VRT holds a Value grade of B, while EPAM has a Value grade of D.
VRT stands above EPAM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VRT 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
VRT or EPAM: Which Is the Better Value Stock Right Now?
Investors with an interest in Computers - IT Services stocks have likely encountered both Vertiv Holdings Co. (VRT - Free Report) and Epam (EPAM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Vertiv Holdings Co. has a Zacks Rank of #1 (Strong Buy), while Epam has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that VRT likely has seen a stronger improvement to its earnings outlook than EPAM has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
VRT currently has a forward P/E ratio of 12.91, while EPAM has a forward P/E of 22.02. We also note that VRT has a PEG ratio of 0.32. 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. EPAM currently has a PEG ratio of 1.86.
Another notable valuation metric for VRT is its P/B ratio of 3.91. 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, EPAM has a P/B of 4.40.
Based on these metrics and many more, VRT holds a Value grade of B, while EPAM has a Value grade of D.
VRT stands above EPAM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VRT is the superior value option right now.