U.S. markets closed
  • S&P 500

    4,352.63
    -90.48 (-2.04%)
     
  • Dow 30

    34,299.99
    -569.38 (-1.63%)
     
  • Nasdaq

    14,546.68
    -423.29 (-2.83%)
     
  • Russell 2000

    2,229.78
    -51.23 (-2.25%)
     
  • Crude Oil

    74.33
    -1.12 (-1.48%)
     
  • Gold

    1,733.90
    -18.10 (-1.03%)
     
  • Silver

    22.47
    -0.23 (-1.01%)
     
  • EUR/USD

    1.1689
    -0.0012 (-0.11%)
     
  • 10-Yr Bond

    1.5340
    +0.0500 (+3.37%)
     
  • GBP/USD

    1.3539
    -0.0165 (-1.21%)
     
  • USD/JPY

    111.4960
    +0.5180 (+0.47%)
     
  • BTC-USD

    41,850.75
    -1,132.55 (-2.63%)
     
  • CMC Crypto 200

    1,033.22
    -23.93 (-2.26%)
     
  • FTSE 100

    7,028.10
    -35.30 (-0.50%)
     
  • Nikkei 225

    30,183.96
    -56.10 (-0.19%)
     

GPX or TAL: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors looking for stocks in the Schools sector might want to consider either GP Strategies (GPX) or TAL Education (TAL). But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

GP Strategies has a Zacks Rank of #2 (Buy), while TAL Education has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GPX likely has seen a stronger improvement to its earnings outlook than TAL has recently. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

GPX currently has a forward P/E ratio of 14.07, while TAL has a forward P/E of 37.33. We also note that GPX has a PEG ratio of 0.94. 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. TAL currently has a PEG ratio of 1.13.

Another notable valuation metric for GPX is its P/B ratio of 1.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TAL has a P/B of 2.82.

These are just a few of the metrics contributing to GPX's Value grade of A and TAL's Value grade of C.

GPX stands above TAL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPX is the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
GP Strategies Corporation (GPX) : Free Stock Analysis Report
 
TAL Education Group (TAL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.