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HIBB vs. TSCO: Which Stock Is the Better Value Option?

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

Hibbett Sports has a Zacks Rank of #1 (Strong Buy), while Tractor Supply has 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 HIBB has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

HIBB currently has a forward P/E ratio of 9.33, while TSCO has a forward P/E of 24.45. We also note that HIBB has a PEG ratio of 0.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSCO currently has a PEG ratio of 2.09.

Another notable valuation metric for HIBB is its P/B ratio of 2.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TSCO has a P/B of 9.78.

Based on these metrics and many more, HIBB holds a Value grade of A, while TSCO has a Value grade of C.

HIBB sticks out from TSCO in both our Zacks Rank and Style Scores models, so value investors will likely feel that HIBB is the better option right now.


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