Yahoo Finance SGRY vs. DOCS: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Medical Services sector have probably already heard of Surgery Partners (SGRY) and Doximity (DOCS). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Surgery Partners and Doximity 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 just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
SGRY currently has a forward P/E ratio of 26.59, while DOCS has a forward P/E of 27.34. We also note that SGRY has a PEG ratio of 1.90. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DOCS currently has a PEG ratio of 2.66.
Another notable valuation metric for SGRY is its P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DOCS has a P/B of 5.57.
These are just a few of the metrics contributing to SGRY's Value grade of B and DOCS's Value grade of D.
Both SGRY and DOCS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SGRY is the superior value option right now.
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Surgery Partners, Inc. (SGRY) : Free Stock Analysis Report
Doximity, Inc. (DOCS) : Free Stock Analysis Report
