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ASO or YETI: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Academy Sports and Outdoors, Inc. (ASO - Free Report) or Yeti (YETI - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Academy Sports and Outdoors, Inc. has a Zacks Rank of #2 (Buy), while Yeti has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASO is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ASO currently has a forward P/E ratio of 5.66, while YETI has a forward P/E of 21.34. We also note that ASO has a PEG ratio of 0.38. 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 1.33.
Another notable valuation metric for ASO is its P/B ratio of 2.34. 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, YETI has a P/B of 10.39.
These are just a few of the metrics contributing to ASO's Value grade of A and YETI's Value grade of C.
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 or YETI: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Academy Sports and Outdoors, Inc. (ASO - Free Report) or Yeti (YETI - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Academy Sports and Outdoors, Inc. has a Zacks Rank of #2 (Buy), while Yeti has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASO is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ASO currently has a forward P/E ratio of 5.66, while YETI has a forward P/E of 21.34. We also note that ASO has a PEG ratio of 0.38. 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 1.33.
Another notable valuation metric for ASO is its P/B ratio of 2.34. 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, YETI has a P/B of 10.39.
These are just a few of the metrics contributing to ASO's Value grade of A and YETI's Value grade of C.
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.