Investors looking for stocks in the Internet - Software sector might want to consider either Sogou or Arco Platform Limited . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Right now, Sogou is sporting a Zacks Rank of #1 (Strong Buy), while Arco Platform Limited has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SOGO has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SOGO currently has a forward P/E ratio of 15.25, while ARCE has a forward P/E of 54.58. We also note that SOGO has a PEG ratio of 0.75. 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. ARCE currently has a PEG ratio of 1.13.
Another notable valuation metric for SOGO is its P/B ratio of 1.62. 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, ARCE has a P/B of 5.24.
These metrics, and several others, help SOGO earn a Value grade of B, while ARCE has been given a Value grade of D.
SOGO stands above ARCE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SOGO is the superior value option right now.
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SOGO or ARCE: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Internet - Software sector might want to consider either Sogou or Arco Platform Limited . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Right now, Sogou is sporting a Zacks Rank of #1 (Strong Buy), while Arco Platform Limited has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SOGO has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SOGO currently has a forward P/E ratio of 15.25, while ARCE has a forward P/E of 54.58. We also note that SOGO has a PEG ratio of 0.75. 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. ARCE currently has a PEG ratio of 1.13.
Another notable valuation metric for SOGO is its P/B ratio of 1.62. 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, ARCE has a P/B of 5.24.
These metrics, and several others, help SOGO earn a Value grade of B, while ARCE has been given a Value grade of D.
SOGO stands above ARCE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SOGO is the superior value option right now.