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.
STRA or LOPE: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Schools sector have probably already heard of Strategic Education (STRA - Free Report) and Grand Canyon Education (LOPE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Currently, Strategic Education has a Zacks Rank of #2 (Buy), while Grand Canyon Education has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that STRA likely has seen a stronger improvement to its earnings outlook than LOPE has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
STRA currently has a forward P/E ratio of 14.19, while LOPE has a forward P/E of 20.81. We also note that STRA has a PEG ratio of 0.95. 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. LOPE currently has a PEG ratio of 1.39.
Another notable valuation metric for STRA is its P/B ratio of 1.20. 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, LOPE has a P/B of 6.69.
These are just a few of the metrics contributing to STRA's Value grade of B and LOPE's Value grade of C.
STRA stands above LOPE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRA 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
STRA or LOPE: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Schools sector have probably already heard of Strategic Education (STRA - Free Report) and Grand Canyon Education (LOPE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Currently, Strategic Education has a Zacks Rank of #2 (Buy), while Grand Canyon Education has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that STRA likely has seen a stronger improvement to its earnings outlook than LOPE has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
STRA currently has a forward P/E ratio of 14.19, while LOPE has a forward P/E of 20.81. We also note that STRA has a PEG ratio of 0.95. 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. LOPE currently has a PEG ratio of 1.39.
Another notable valuation metric for STRA is its P/B ratio of 1.20. 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, LOPE has a P/B of 6.69.
These are just a few of the metrics contributing to STRA's Value grade of B and LOPE's Value grade of C.
STRA stands above LOPE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRA is the superior value option right now.