U.S. Markets close in 2 hrs 44 mins
  • S&P 500

    4,161.11
    -24.36 (-0.58%)
     
  • Dow 30

    34,041.23
    -159.44 (-0.47%)
     
  • Nasdaq

    13,898.83
    -153.51 (-1.09%)
     
  • Russell 2000

    2,222.98
    -39.69 (-1.75%)
     
  • Crude Oil

    63.34
    +0.21 (+0.33%)
     
  • Gold

    1,771.50
    -8.70 (-0.49%)
     
  • Silver

    25.80
    -0.31 (-1.19%)
     
  • EUR/USD

    1.2042
    +0.0062 (+0.5178%)
     
  • 10-Yr Bond

    1.5910
    +0.0180 (+1.14%)
     
  • Vix

    18.38
    +2.13 (+13.11%)
     
  • GBP/USD

    1.3988
    +0.0148 (+1.0729%)
     
  • USD/JPY

    108.0890
    -0.6940 (-0.6380%)
     
  • BTC-USD

    55,187.64
    -490.55 (-0.88%)
     
  • CMC Crypto 200

    1,240.79
    -58.16 (-4.48%)
     
  • FTSE 100

    7,000.08
    -19.45 (-0.28%)
     
  • Nikkei 225

    29,685.37
    +2.00 (+0.01%)
     

SYKE or EXLS: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors looking for stocks in the Outsourcing sector might want to consider either Sykes Enterprises (SYKE) or ExlService Holdings (EXLS). But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Sykes Enterprises has a Zacks Rank of #2 (Buy), while ExlService Holdings has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SYKE 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

SYKE currently has a forward P/E ratio of 13.13, while EXLS has a forward P/E of 20.44. We also note that SYKE has a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EXLS currently has a PEG ratio of 2.07.

Another notable valuation metric for SYKE is its P/B ratio of 1.79. 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, EXLS has a P/B of 3.65.

These metrics, and several others, help SYKE earn a Value grade of A, while EXLS has been given a Value grade of C.

SYKE has seen stronger estimate revision activity and sports more attractive valuation metrics than EXLS, so it seems like value investors will conclude that SYKE is the superior 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
 
Sykes Enterprises, Incorporated (SYKE) : Free Stock Analysis Report
 
ExlService Holdings, Inc. (EXLS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.