Investors interested in the Internet is including software and services. These stocks are likely familiar with NetEase (NTES) and RingCentral (NYSE: RNG at https://www.webull.com/quote/nyse-rng). But these two stocks are offering value investors a better bang for their buck right now. They will need to take a closer look. The best method to find good value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank is emphasizing companies with positive estimate revision trends and these style scores highlight stocks with specific traits.
The Differences Between NTES Or RNG Stock Value
- NetEase and RingCentral are sporting Zacks Ranks of #2 and #3 (Hold), respectively, right now. This system is emphasizing companies that have seen positive earnings estimate revisions.
- So investors should be feeling comfortable knowing that NTES is likely seeing its earnings outlook improve to a greater extent. But this value investors are interested in.
- Value investors have analyzed a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
- The Value category of the Style Scores system identifies undervalued companies by looking at several key metrics. These are covering the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that are helping to determine a company’s fair value.
- NTES currently has a forward P/E ratio of 18.44, while RNG or ysearca nugt stock news at https://www.webull.com/quote/nysearca-nugt has a forward P/E of 198.75. They are noted that NTES has a PEG ratio of 0.43. This is a commonly-used P/E ratio, with the PEG ratio also factoring in a company’s expected earnings growth rate. RNG currently has a PEG ratio of 11.57.
- Another notable valuation metric for NTES is its P/B ratio of 4.14. The P/B ratio is pitting a stock’s market value against its book value that is defined as total assets minus total liabilities. For comparison, RNG has a P/B of 21.48.
- These metrics, and several others, help NTES earn a Value grade of B, while RNG has been given a Value grade of F.
- NTES is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, they feel that NTES is likely the superior value option right now.