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CLMB or QXO: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Technology Services sector might want to consider either Climb Global Solutions (CLMB - Free Report) or QXO, Inc. (QXO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Climb Global Solutions and QXO, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CLMB is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

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.

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.

CLMB currently has a forward P/E ratio of 29.36, while QXO has a forward P/E of 47.69. We also note that CLMB has a PEG ratio of 1.84. 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. QXO currently has a PEG ratio of 2.38.

Another notable valuation metric for CLMB is its P/B ratio of 6.39. 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, QXO has a P/B of 13.22.

These are just a few of the metrics contributing to CLMB's Value grade of B and QXO's Value grade of D.

CLMB sticks out from QXO in both our Zacks Rank and Style Scores models, so value investors will likely feel that CLMB is the better option right now.


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