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YETI or POOL: Which Is the Better Value Stock Right Now?
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Investors with an interest in Leisure and Recreation Products stocks have likely encountered both Yeti (YETI - Free Report) and Pool Corp. (POOL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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). This means that YETI'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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
YETI currently has a forward P/E ratio of 14.23, while POOL has a forward P/E of 31.43. We also note that YETI has a PEG ratio of 1.01. 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 2.53.
Another notable valuation metric for YETI is its P/B ratio of 4.88. 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 9.39.
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 with an interest in Leisure and Recreation Products stocks have likely encountered both Yeti (YETI - Free Report) and Pool Corp. (POOL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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). This means that YETI'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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
YETI currently has a forward P/E ratio of 14.23, while POOL has a forward P/E of 31.43. We also note that YETI has a PEG ratio of 1.01. 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 2.53.
Another notable valuation metric for YETI is its P/B ratio of 4.88. 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 9.39.
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.