We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BABA or CART: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Internet - Commerce stocks are likely familiar with Alibaba (BABA - Free Report) and Maplebear (CART - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Alibaba is sporting a Zacks Rank of #1 (Strong Buy), while Maplebear has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that BABA likely has seen a stronger improvement to its earnings outlook than CART has recently. 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 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.
BABA currently has a forward P/E ratio of 9.15, while CART has a forward P/E of 30.50. We also note that BABA has a PEG ratio of 0.38. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CART currently has a PEG ratio of 1.11.
Another notable valuation metric for BABA is its P/B ratio of 1.40. 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, CART has a P/B of 3.88.
Based on these metrics and many more, BABA holds a Value grade of A, while CART has a Value grade of C.
BABA stands above CART thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BABA is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BABA or CART: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Commerce stocks are likely familiar with Alibaba (BABA - Free Report) and Maplebear (CART - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Alibaba is sporting a Zacks Rank of #1 (Strong Buy), while Maplebear has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that BABA likely has seen a stronger improvement to its earnings outlook than CART has recently. 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 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.
BABA currently has a forward P/E ratio of 9.15, while CART has a forward P/E of 30.50. We also note that BABA has a PEG ratio of 0.38. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CART currently has a PEG ratio of 1.11.
Another notable valuation metric for BABA is its P/B ratio of 1.40. 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, CART has a P/B of 3.88.
Based on these metrics and many more, BABA holds a Value grade of A, while CART has a Value grade of C.
BABA stands above CART thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BABA is the superior value option right now.