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HIBB or RGS: Which Is the Better Value Stock Right Now?

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Investors with an interest in Retail - Miscellaneous stocks have likely encountered both Hibbett Sports (HIBB - Free Report) and Regis (RGS - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Hibbett Sports and Regis are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle 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.

HIBB currently has a forward P/E ratio of 10.54, while RGS has a forward P/E of 20.15. We also note that HIBB has a PEG ratio of 1.62. 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. RGS currently has a PEG ratio of 2.69.

Another notable valuation metric for HIBB is its P/B ratio of 1.12. 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, RGS has a P/B of 2.07.

These metrics, and several others, help HIBB earn a Value grade of A, while RGS has been given a Value grade of D.

Both HIBB and RGS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HIBB is the superior value option right now.


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