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WSM or LOVE: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Retail - Home Furnishings sector might want to consider either Williams-Sonoma (WSM - Free Report) or Lovesac (LOVE - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Williams-Sonoma is sporting a Zacks Rank of #1 (Strong Buy), while Lovesac has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WSM has an improving earnings 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.
WSM currently has a forward P/E ratio of 12.86, while LOVE has a forward P/E of 488.59. We also note that WSM has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LOVE currently has a PEG ratio of 13.96.
Another notable valuation metric for WSM is its P/B ratio of 5.93. 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, LOVE has a P/B of 8.05.
Based on these metrics and many more, WSM holds a Value grade of B, while LOVE has a Value grade of D.
WSM stands above LOVE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WSM is the superior value option right now.
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WSM or LOVE: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Retail - Home Furnishings sector might want to consider either Williams-Sonoma (WSM - Free Report) or Lovesac (LOVE - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Williams-Sonoma is sporting a Zacks Rank of #1 (Strong Buy), while Lovesac has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WSM has an improving earnings 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.
WSM currently has a forward P/E ratio of 12.86, while LOVE has a forward P/E of 488.59. We also note that WSM has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LOVE currently has a PEG ratio of 13.96.
Another notable valuation metric for WSM is its P/B ratio of 5.93. 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, LOVE has a P/B of 8.05.
Based on these metrics and many more, WSM holds a Value grade of B, while LOVE has a Value grade of D.
WSM stands above LOVE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WSM is the superior value option right now.