Investors looking for stocks in the Medical Services sector might want to consider either GoodRx Holdings, Inc. (GDRX) or Progyny (PGNY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, GoodRx Holdings, Inc. has a Zacks Rank of #2 (Buy), while Progyny has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GDRX has 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GDRX currently has a forward P/E ratio of 9.59, while PGNY has a forward P/E of 14.46. We also note that GDRX has a PEG ratio of 0.86. 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. PGNY currently has a PEG ratio of 0.94.
Another notable valuation metric for GDRX is its P/B ratio of 2. 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, PGNY has a P/B of 4.73.
These are just a few of the metrics contributing to GDRX's Value grade of A and PGNY's Value grade of C.
GDRX 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 GDRX is likely the superior value option right now.
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GoodRx Holdings, Inc. (GDRX): Free Stock Analysis Report Progyny, Inc. (PGNY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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