Yahoo Finance SPXC or PLTR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either SPX Technologies (SPXC) or Palantir Technologies Inc. (PLTR). But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, SPX Technologies is sporting a Zacks Rank of #2 (Buy), while Palantir Technologies Inc. has a Zacks Rank of #3 (Hold). This means that SPXC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SPXC currently has a forward P/E ratio of 23.30, while PLTR has a forward P/E of 178.64. We also note that SPXC has a PEG ratio of 1.29. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PLTR currently has a PEG ratio of 6.34.
Another notable valuation metric for SPXC is its P/B ratio of 2.84. 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, PLTR has a P/B of 6.85.
Based on these metrics and many more, SPXC holds a Value grade of B, while PLTR has a Value grade of D.
SPXC has seen stronger estimate revision activity and sports more attractive valuation metrics than PLTR, so it seems like value investors will conclude that SPXC is the superior option right now.
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SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
