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PRDO or UTI: Which Is the Better Value Stock Right Now?
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Investors interested in Schools stocks are likely familiar with Perdoceo Education (PRDO - Free Report) and Universal Technical Institute (UTI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Perdoceo Education has a Zacks Rank of #1 (Strong Buy), while Universal Technical Institute has a Zacks Rank of #3 (Hold). This means that PRDO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PRDO currently has a forward P/E ratio of 8.72, while UTI has a forward P/E of 61.93. We also note that PRDO has a PEG ratio of 0.58. 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. UTI currently has a PEG ratio of 4.13.
Another notable valuation metric for PRDO is its P/B ratio of 1.40. 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, UTI has a P/B of 1.85.
These metrics, and several others, help PRDO earn a Value grade of A, while UTI has been given a Value grade of C.
PRDO 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 PRDO is likely the superior value option right now.
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PRDO or UTI: Which Is the Better Value Stock Right Now?
Investors interested in Schools stocks are likely familiar with Perdoceo Education (PRDO - Free Report) and Universal Technical Institute (UTI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Perdoceo Education has a Zacks Rank of #1 (Strong Buy), while Universal Technical Institute has a Zacks Rank of #3 (Hold). This means that PRDO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PRDO currently has a forward P/E ratio of 8.72, while UTI has a forward P/E of 61.93. We also note that PRDO has a PEG ratio of 0.58. 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. UTI currently has a PEG ratio of 4.13.
Another notable valuation metric for PRDO is its P/B ratio of 1.40. 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, UTI has a P/B of 1.85.
These metrics, and several others, help PRDO earn a Value grade of A, while UTI has been given a Value grade of C.
PRDO 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 PRDO is likely the superior value option right now.