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YETI or POOL: Which Is the Better Value Stock Right Now?
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Investors interested in Leisure and Recreation Products stocks are likely familiar with Yeti (YETI - Free Report) and Pool Corp. (POOL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Yeti is sporting a Zacks Rank of #2 (Buy), while Pool Corp. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that YETI likely has seen a stronger improvement to its earnings outlook than POOL has recently. However, value investors will care about much more than just this.
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.
YETI currently has a forward P/E ratio of 14.02, while POOL has a forward P/E of 26.68. We also note that YETI has a PEG ratio of 1. 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 2.15.
Another notable valuation metric for YETI is its P/B ratio of 4.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, POOL has a P/B of 8.44.
Based on these metrics and many more, YETI holds a Value grade of B, while POOL has a Value grade of F.
YETI stands above POOL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that YETI is the superior value option right now.
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YETI or POOL: Which Is the Better Value Stock Right Now?
Investors interested in Leisure and Recreation Products stocks are likely familiar with Yeti (YETI - Free Report) and Pool Corp. (POOL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Yeti is sporting a Zacks Rank of #2 (Buy), while Pool Corp. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that YETI likely has seen a stronger improvement to its earnings outlook than POOL has recently. However, value investors will care about much more than just this.
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.
YETI currently has a forward P/E ratio of 14.02, while POOL has a forward P/E of 26.68. We also note that YETI has a PEG ratio of 1. 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 2.15.
Another notable valuation metric for YETI is its P/B ratio of 4.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, POOL has a P/B of 8.44.
Based on these metrics and many more, YETI holds a Value grade of B, while POOL has a Value grade of F.
YETI stands above POOL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that YETI is the superior value option right now.