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ACI or CHWY: Which Is the Better Value Stock Right Now?
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Investors interested in Consumer Products - Staples stocks are likely familiar with Albertsons Companies, Inc. (ACI - Free Report) and Chewy (CHWY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Albertsons Companies, Inc. and Chewy are both sporting a Zacks Rank of # 2 (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. However, value investors will care about much more than just this.
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.
ACI currently has a forward P/E ratio of 9.82, while CHWY has a forward P/E of 765.85. We also note that ACI has a PEG ratio of 0.82. 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. CHWY currently has a PEG ratio of 38.29.
Another notable valuation metric for ACI is its P/B ratio of 6.86. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CHWY has a P/B of 472.44.
These metrics, and several others, help ACI earn a Value grade of A, while CHWY has been given a Value grade of F.
Both ACI and CHWY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ACI is the superior value option right now.
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ACI or CHWY: Which Is the Better Value Stock Right Now?
Investors interested in Consumer Products - Staples stocks are likely familiar with Albertsons Companies, Inc. (ACI - Free Report) and Chewy (CHWY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Albertsons Companies, Inc. and Chewy are both sporting a Zacks Rank of # 2 (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. However, value investors will care about much more than just this.
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.
ACI currently has a forward P/E ratio of 9.82, while CHWY has a forward P/E of 765.85. We also note that ACI has a PEG ratio of 0.82. 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. CHWY currently has a PEG ratio of 38.29.
Another notable valuation metric for ACI is its P/B ratio of 6.86. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CHWY has a P/B of 472.44.
These metrics, and several others, help ACI earn a Value grade of A, while CHWY has been given a Value grade of F.
Both ACI and CHWY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ACI is the superior value option right now.