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SMGZY or CLMB: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Technology Services sector have probably already heard of Smiths Group PLC (SMGZY - Free Report) and Climb Global Solutions (CLMB - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Both Smiths Group PLC and Climb Global Solutions have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 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.
SMGZY currently has a forward P/E ratio of 14.53, while CLMB has a forward P/E of 30.35. We also note that SMGZY has a PEG ratio of 1.26. 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. CLMB currently has a PEG ratio of 2.76.
Another notable valuation metric for SMGZY is its P/B ratio of 2.91. 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, CLMB has a P/B of 5.72.
These metrics, and several others, help SMGZY earn a Value grade of B, while CLMB has been given a Value grade of C.
Both SMGZY and CLMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SMGZY is the superior value option right now.
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SMGZY or CLMB: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Technology Services sector have probably already heard of Smiths Group PLC (SMGZY - Free Report) and Climb Global Solutions (CLMB - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Both Smiths Group PLC and Climb Global Solutions have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 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.
SMGZY currently has a forward P/E ratio of 14.53, while CLMB has a forward P/E of 30.35. We also note that SMGZY has a PEG ratio of 1.26. 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. CLMB currently has a PEG ratio of 2.76.
Another notable valuation metric for SMGZY is its P/B ratio of 2.91. 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, CLMB has a P/B of 5.72.
These metrics, and several others, help SMGZY earn a Value grade of B, while CLMB has been given a Value grade of C.
Both SMGZY and CLMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SMGZY is the superior value option right now.