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TRIP vs. AMZN: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Internet - Commerce sector might want to consider either TripAdvisor (TRIP - Free Report) or Amazon (AMZN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, TripAdvisor has a Zacks Rank of #2 (Buy), while Amazon has a Zacks Rank of #3 (Hold). This means that TRIP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
TRIP currently has a forward P/E ratio of 16.16, while AMZN has a forward P/E of 43.74. We also note that TRIP has a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMZN currently has a PEG ratio of 1.56.
Another notable valuation metric for TRIP is its P/B ratio of 3.99. 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, AMZN has a P/B of 9.22.
Based on these metrics and many more, TRIP holds a Value grade of B, while AMZN has a Value grade of C.
TRIP 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 TRIP is likely the superior value option right now.
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TRIP vs. AMZN: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Internet - Commerce sector might want to consider either TripAdvisor (TRIP - Free Report) or Amazon (AMZN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, TripAdvisor has a Zacks Rank of #2 (Buy), while Amazon has a Zacks Rank of #3 (Hold). This means that TRIP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
TRIP currently has a forward P/E ratio of 16.16, while AMZN has a forward P/E of 43.74. We also note that TRIP has a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMZN currently has a PEG ratio of 1.56.
Another notable valuation metric for TRIP is its P/B ratio of 3.99. 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, AMZN has a P/B of 9.22.
Based on these metrics and many more, TRIP holds a Value grade of B, while AMZN has a Value grade of C.
TRIP 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 TRIP is likely the superior value option right now.