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ASO vs. YETI: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Leisure and Recreation Products stocks have likely encountered both Academy Sports and Outdoors, Inc. (ASO - Free Report) and Yeti (YETI - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Academy Sports and Outdoors, Inc. has a Zacks Rank of #2 (Buy), while Yeti has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASO has an improving earnings outlook. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASO currently has a forward P/E ratio of 6.28, while YETI has a forward P/E of 34.65. We also note that ASO has a PEG ratio of 0.42. 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. YETI currently has a PEG ratio of 1.95.
Another notable valuation metric for ASO is its P/B ratio of 2.86. 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, YETI has a P/B of 17.55.
These metrics, and several others, help ASO earn a Value grade of A, while YETI has been given a Value grade of D.
ASO stands above YETI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASO is the superior value option right now.
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ASO vs. YETI: Which Stock Should Value Investors Buy Now?
Investors with an interest in Leisure and Recreation Products stocks have likely encountered both Academy Sports and Outdoors, Inc. (ASO - Free Report) and Yeti (YETI - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Academy Sports and Outdoors, Inc. has a Zacks Rank of #2 (Buy), while Yeti has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASO has an improving earnings outlook. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASO currently has a forward P/E ratio of 6.28, while YETI has a forward P/E of 34.65. We also note that ASO has a PEG ratio of 0.42. 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. YETI currently has a PEG ratio of 1.95.
Another notable valuation metric for ASO is its P/B ratio of 2.86. 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, YETI has a P/B of 17.55.
These metrics, and several others, help ASO earn a Value grade of A, while YETI has been given a Value grade of D.
ASO stands above YETI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASO is the superior value option right now.