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HIBB vs. FIVE: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Hibbett Sports or Five Below (FIVE - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hibbett Sports is sporting a Zacks Rank of #1 (Strong Buy), while Five Below has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that HIBB likely has seen a stronger improvement to its earnings outlook than FIVE has recently. However, value investors will care about much more than just this.
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 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.
HIBB currently has a forward P/E ratio of 14.20, while FIVE has a forward P/E of 45.11. We also note that HIBB has a PEG ratio of 0.82. 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. FIVE currently has a PEG ratio of 2.15.
Another notable valuation metric for HIBB is its P/B ratio of 3.04. 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 11.86.
These are just a few of the metrics contributing to HIBB's Value grade of B and FIVE's Value grade of F.
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 vs. FIVE: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Hibbett Sports or Five Below (FIVE - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hibbett Sports is sporting a Zacks Rank of #1 (Strong Buy), while Five Below has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that HIBB likely has seen a stronger improvement to its earnings outlook than FIVE has recently. However, value investors will care about much more than just this.
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 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.
HIBB currently has a forward P/E ratio of 14.20, while FIVE has a forward P/E of 45.11. We also note that HIBB has a PEG ratio of 0.82. 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. FIVE currently has a PEG ratio of 2.15.
Another notable valuation metric for HIBB is its P/B ratio of 3.04. 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 11.86.
These are just a few of the metrics contributing to HIBB's Value grade of B and FIVE's Value grade of F.
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.