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ODD vs. PANW: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Internet - Software sector have probably already heard of Oddity Tech (ODD - Free Report) and Palo Alto Networks (PANW - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Oddity Tech and Palo Alto Networks have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
ODD currently has a forward P/E ratio of 21.19, while PANW has a forward P/E of 55.56. We also note that ODD has a PEG ratio of 1.06. 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. PANW currently has a PEG ratio of 2.64.
Another notable valuation metric for ODD is its P/B ratio of 5.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PANW has a P/B of 21.74.
These are just a few of the metrics contributing to ODD's Value grade of B and PANW's Value grade of D.
Both ODD and PANW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ODD is the superior value option right now.
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ODD vs. PANW: Which Stock Is the Better Value Option?
Investors interested in stocks from the Internet - Software sector have probably already heard of Oddity Tech (ODD - Free Report) and Palo Alto Networks (PANW - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Oddity Tech and Palo Alto Networks have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
ODD currently has a forward P/E ratio of 21.19, while PANW has a forward P/E of 55.56. We also note that ODD has a PEG ratio of 1.06. 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. PANW currently has a PEG ratio of 2.64.
Another notable valuation metric for ODD is its P/B ratio of 5.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PANW has a P/B of 21.74.
These are just a few of the metrics contributing to ODD's Value grade of B and PANW's Value grade of D.
Both ODD and PANW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ODD is the superior value option right now.