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ADRNY vs. OLLI: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ahold NV (ADRNY - Free Report) and Ollie's Bargain Outlet (OLLI - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ahold NV is sporting a Zacks Rank of #2 (Buy), while Ollie's Bargain Outlet has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ADRNY is likely seeing its earnings outlook improve to a greater extent. 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.
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.
ADRNY currently has a forward P/E ratio of 13.12, while OLLI has a forward P/E of 25.09. We also note that ADRNY has a PEG ratio of 3.76. 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. OLLI currently has a PEG ratio of 6.05.
Another notable valuation metric for ADRNY is its P/B ratio of 2.19. 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, OLLI has a P/B of 3.12.
These are just a few of the metrics contributing to ADRNY's Value grade of A and OLLI's Value grade of C.
ADRNY stands above OLLI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADRNY is the superior value option right now.
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ADRNY vs. OLLI: Which Stock Is the Better Value Option?
Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ahold NV (ADRNY - Free Report) and Ollie's Bargain Outlet (OLLI - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ahold NV is sporting a Zacks Rank of #2 (Buy), while Ollie's Bargain Outlet has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ADRNY is likely seeing its earnings outlook improve to a greater extent. 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.
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.
ADRNY currently has a forward P/E ratio of 13.12, while OLLI has a forward P/E of 25.09. We also note that ADRNY has a PEG ratio of 3.76. 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. OLLI currently has a PEG ratio of 6.05.
Another notable valuation metric for ADRNY is its P/B ratio of 2.19. 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, OLLI has a P/B of 3.12.
These are just a few of the metrics contributing to ADRNY's Value grade of A and OLLI's Value grade of C.
ADRNY stands above OLLI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADRNY is the superior value option right now.