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CBD vs. WMT: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Retail - Supermarkets sector might want to consider either CBD (CBD - Free Report) or Walmart (WMT - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
CBD and Walmart are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
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.
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.
CBD currently has a forward P/E ratio of 15.79, while WMT has a forward P/E of 21.14. We also note that CBD has a PEG ratio of 1.07. 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. WMT currently has a PEG ratio of 4.47.
Another notable valuation metric for CBD is its P/B ratio of 1.44. 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, WMT has a P/B of 4.01.
These are just a few of the metrics contributing to CBD's Value grade of B and WMT's Value grade of C.
Both CBD and WMT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBD is the superior value option right now.
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CBD vs. WMT: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Supermarkets sector might want to consider either CBD (CBD - Free Report) or Walmart (WMT - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
CBD and Walmart are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
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.
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.
CBD currently has a forward P/E ratio of 15.79, while WMT has a forward P/E of 21.14. We also note that CBD has a PEG ratio of 1.07. 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. WMT currently has a PEG ratio of 4.47.
Another notable valuation metric for CBD is its P/B ratio of 1.44. 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, WMT has a P/B of 4.01.
These are just a few of the metrics contributing to CBD's Value grade of B and WMT's Value grade of C.
Both CBD and WMT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBD is the superior value option right now.