YETI or POOL: Which Is the Better Value Stock Right Now?

POOL YETI

Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Yeti (YETI - Free Report) or Pool Corp. (POOL - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Yeti and Pool Corp. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that YETI likely has seen a stronger improvement to its earnings outlook than POOL 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

YETI currently has a forward P/E ratio of 14.51, while POOL has a forward P/E of 28. We also note that YETI has a PEG ratio of 1.29. 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. POOL currently has a PEG ratio of 3.54.

Another notable valuation metric for YETI is its P/B ratio of 4.34. 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, POOL has a P/B of 10.61.

These are just a few of the metrics contributing to YETI's Value grade of A and POOL's Value grade of D.

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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