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DKS vs. ULTA: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Retail - Miscellaneous sector have probably already heard of Dick's Sporting Goods (DKS - Free Report) and Ulta Beauty (ULTA - 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.
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 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.
Dick's Sporting Goods has a Zacks Rank of #2 (Buy), while Ulta Beauty has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DKS likely has seen a stronger improvement to its earnings outlook than ULTA has recently. But this is only part of the picture for value investors.
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.
DKS currently has a forward P/E ratio of 11.23, while ULTA has a forward P/E of 23.97. We also note that DKS has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ULTA currently has a PEG ratio of 1.29.
Another notable valuation metric for DKS is its P/B ratio of 1.90. 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, ULTA has a P/B of 8.77.
These metrics, and several others, help DKS earn a Value grade of A, while ULTA has been given a Value grade of C.
DKS stands above ULTA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DKS is the superior value option right now.
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DKS vs. ULTA: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Retail - Miscellaneous sector have probably already heard of Dick's Sporting Goods (DKS - Free Report) and Ulta Beauty (ULTA - 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.
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 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.
Dick's Sporting Goods has a Zacks Rank of #2 (Buy), while Ulta Beauty has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DKS likely has seen a stronger improvement to its earnings outlook than ULTA has recently. But this is only part of the picture for value investors.
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.
DKS currently has a forward P/E ratio of 11.23, while ULTA has a forward P/E of 23.97. We also note that DKS has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ULTA currently has a PEG ratio of 1.29.
Another notable valuation metric for DKS is its P/B ratio of 1.90. 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, ULTA has a P/B of 8.77.
These metrics, and several others, help DKS earn a Value grade of A, while ULTA has been given a Value grade of C.
DKS stands above ULTA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DKS is the superior value option right now.