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DLO or V: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Financial Transaction Services sector have probably already heard of DLocal (DLO - Free Report) and Visa (V - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, DLocal has a Zacks Rank of #2 (Buy), while Visa 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 DLO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
DLO currently has a forward P/E ratio of 24.81, while V has a forward P/E of 28.42. We also note that DLO has a PEG ratio of 0.90. 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. V currently has a PEG ratio of 1.87.
Another notable valuation metric for DLO is its P/B ratio of 10.42. 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, V has a P/B of 12.46.
These are just a few of the metrics contributing to DLO's Value grade of B and V's Value grade of C.
DLO 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 DLO is likely the superior value option right now.
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DLO or V: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Financial Transaction Services sector have probably already heard of DLocal (DLO - Free Report) and Visa (V - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, DLocal has a Zacks Rank of #2 (Buy), while Visa 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 DLO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
DLO currently has a forward P/E ratio of 24.81, while V has a forward P/E of 28.42. We also note that DLO has a PEG ratio of 0.90. 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. V currently has a PEG ratio of 1.87.
Another notable valuation metric for DLO is its P/B ratio of 10.42. 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, V has a P/B of 12.46.
These are just a few of the metrics contributing to DLO's Value grade of B and V's Value grade of C.
DLO 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 DLO is likely the superior value option right now.