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ASO or POOL: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Academy Sports and Outdoors, Inc. (ASO - Free Report) and Pool Corp. (POOL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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. and Pool Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ASO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
ASO currently has a forward P/E ratio of 7.69, while POOL has a forward P/E of 27.25. We also note that ASO has a PEG ratio of 0.78. 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. POOL currently has a PEG ratio of 3.70.
Another notable valuation metric for ASO is its P/B ratio of 2.02. 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, POOL has a P/B of 10.32.
These metrics, and several others, help ASO earn a Value grade of A, while POOL has been given a Value grade of D.
ASO sticks out from POOL in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASO is the better option right now.
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ASO or POOL: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Academy Sports and Outdoors, Inc. (ASO - Free Report) and Pool Corp. (POOL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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. and Pool Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ASO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
ASO currently has a forward P/E ratio of 7.69, while POOL has a forward P/E of 27.25. We also note that ASO has a PEG ratio of 0.78. 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. POOL currently has a PEG ratio of 3.70.
Another notable valuation metric for ASO is its P/B ratio of 2.02. 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, POOL has a P/B of 10.32.
These metrics, and several others, help ASO earn a Value grade of A, while POOL has been given a Value grade of D.
ASO sticks out from POOL in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASO is the better option right now.