
Please try another search
Investors interested in Computers - IT Services stocks are likely familiar with SAIC (SAIC) and Wix.com (WIX). 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.
Right now, SAIC is sporting a Zacks Rank of #2 (Buy), while Wix.com has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SAIC likely has seen a stronger improvement to its earnings outlook than WIX has recently. But this is just one piece of the puzzle 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.
SAIC currently has a forward P/E ratio of 10.02, while WIX has a forward P/E of 80.76. We also note that SAIC has a PEG ratio of 1.82. 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. WIX currently has a PEG ratio of 2.31.
Another notable valuation metric for SAIC is its P/B ratio of 2.59. 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, WIX has a P/B of 21.95.
Based on these metrics and many more, SAIC holds a Value grade of B, while WIX has a Value grade of F.
SAIC sticks out from WIX in both our Zacks Rank and Style Scores models, so value investors will likely feel that SAIC is the better option right now.
The fortune of Nvidia (NASDAQ:NVDA) is closely tied to Big Tech hyperscalers. Although the AI/GPU designer didn’t name its largest clients in the latest 10-K filing on Wednesday,...
In a market fraught with uncertainty, investors often seek refuge in defensive-minded stocks that offer stability and resilience. Two such stalwarts, Johnson & Johnson and...
The United States is the largest exporter of liquefied natural gas (LNG), having surpassed Australia and Qatar in 2023. The United States exports an estimated 12.5 billion cubic...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.