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TTEC or DOCU: Which Is the Better Value Stock Right Now?
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Investors interested in Technology Services stocks are likely familiar with TTEC Holdings (TTEC - Free Report) and DocuSign (DOCU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.
Currently, both TTEC Holdings and DocuSign are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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.
TTEC currently has a forward P/E ratio of 22.57, while DOCU has a forward P/E of 305.71. We also note that TTEC has a PEG ratio of 3.55. 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. DOCU currently has a PEG ratio of 9.80.
Another notable valuation metric for TTEC is its P/B ratio of 5.23. 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, DOCU has a P/B of 51.97.
These metrics, and several others, help TTEC earn a Value grade of A, while DOCU has been given a Value grade of F.
Both TTEC and DOCU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TTEC is the superior value option right now.
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TTEC or DOCU: Which Is the Better Value Stock Right Now?
Investors interested in Technology Services stocks are likely familiar with TTEC Holdings (TTEC - Free Report) and DocuSign (DOCU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.
Currently, both TTEC Holdings and DocuSign are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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.
TTEC currently has a forward P/E ratio of 22.57, while DOCU has a forward P/E of 305.71. We also note that TTEC has a PEG ratio of 3.55. 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. DOCU currently has a PEG ratio of 9.80.
Another notable valuation metric for TTEC is its P/B ratio of 5.23. 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, DOCU has a P/B of 51.97.
These metrics, and several others, help TTEC earn a Value grade of A, while DOCU has been given a Value grade of F.
Both TTEC and DOCU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TTEC is the superior value option right now.