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HIBB or FIVE: Which Is the Better Value Stock Right Now?
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Investors interested in Retail - Miscellaneous stocks are likely familiar with Hibbett Sports and Five Below (FIVE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Hibbett Sports has a Zacks Rank of #1 (Strong Buy), while Five Below has a Zacks Rank of #3 (Hold). This means that HIBB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
HIBB currently has a forward P/E ratio of 11.09, while FIVE has a forward P/E of 71.58. We also note that HIBB has a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FIVE currently has a PEG ratio of 3.67.
Another notable valuation metric for HIBB is its P/B ratio of 1.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FIVE has a P/B of 9.07.
Based on these metrics and many more, HIBB holds a Value grade of A, while FIVE has a Value grade of D.
HIBB has seen stronger estimate revision activity and sports more attractive valuation metrics than FIVE, so it seems like value investors will conclude that HIBB is the superior option right now.
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HIBB or FIVE: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Miscellaneous stocks are likely familiar with Hibbett Sports and Five Below (FIVE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Hibbett Sports has a Zacks Rank of #1 (Strong Buy), while Five Below has a Zacks Rank of #3 (Hold). This means that HIBB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
HIBB currently has a forward P/E ratio of 11.09, while FIVE has a forward P/E of 71.58. We also note that HIBB has a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FIVE currently has a PEG ratio of 3.67.
Another notable valuation metric for HIBB is its P/B ratio of 1.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FIVE has a P/B of 9.07.
Based on these metrics and many more, HIBB holds a Value grade of A, while FIVE has a Value grade of D.
HIBB has seen stronger estimate revision activity and sports more attractive valuation metrics than FIVE, so it seems like value investors will conclude that HIBB is the superior option right now.