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QFIN or CART: Which Is the Better Value Stock Right Now?
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Investors interested in Technology Services stocks are likely familiar with Qifu Technology, Inc. (QFIN - Free Report) and Maplebear (CART - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Qifu Technology, Inc. has a Zacks Rank of #2 (Buy), while Maplebear has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QFIN is likely seeing its earnings outlook improve to a greater extent. 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.
QFIN currently has a forward P/E ratio of 4.80, while CART has a forward P/E of 32.68. We also note that QFIN has a PEG ratio of 0.44. 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. CART currently has a PEG ratio of 1.19.
Another notable valuation metric for QFIN is its P/B ratio of 1.06. 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, CART has a P/B of 2.82.
Based on these metrics and many more, QFIN holds a Value grade of A, while CART has a Value grade of D.
QFIN 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 QFIN is likely the superior value option right now.
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QFIN or CART: Which Is the Better Value Stock Right Now?
Investors interested in Technology Services stocks are likely familiar with Qifu Technology, Inc. (QFIN - Free Report) and Maplebear (CART - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Qifu Technology, Inc. has a Zacks Rank of #2 (Buy), while Maplebear has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QFIN is likely seeing its earnings outlook improve to a greater extent. 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.
QFIN currently has a forward P/E ratio of 4.80, while CART has a forward P/E of 32.68. We also note that QFIN has a PEG ratio of 0.44. 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. CART currently has a PEG ratio of 1.19.
Another notable valuation metric for QFIN is its P/B ratio of 1.06. 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, CART has a P/B of 2.82.
Based on these metrics and many more, QFIN holds a Value grade of A, while CART has a Value grade of D.
QFIN 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 QFIN is likely the superior value option right now.