Investors looking for stocks in the Financial - Investment Bank sector might want to consider either UP Fintech Holding Limited (TIGR) or Evercore (EVR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, UP Fintech Holding Limited has a Zacks Rank of #2 (Buy), while Evercore has a Zacks Rank of #3 (Hold). This means that TIGR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TIGR currently has a forward P/E ratio of 12.69, while EVR has a forward P/E of 24.96. We also note that TIGR has a PEG ratio of 0.66. 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. EVR currently has a PEG ratio of 0.68.
Another notable valuation metric for TIGR is its P/B ratio of 2.49. 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, EVR has a P/B of 6.39.
Based on these metrics and many more, TIGR holds a Value grade of B, while EVR has a Value grade of C.
TIGR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TIGR is likely the superior value option right now.
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UP Fintech Holding Limited (TIGR): Free Stock Analysis Report Evercore Inc (EVR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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