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Are These Consumer Discretionary Stocks a Great Value Stocks Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Academy Sports and Outdoors (ASO - Free Report) . ASO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that ASO holds a PEG ratio of 0.42. 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. ASO's industry currently sports an average PEG of 0.72. Over the last 12 months, ASO's PEG has been as high as 3.65 and as low as 0.33, with a median of 0.70.
Another notable valuation metric for ASO is its P/B ratio of 2.54. 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. This stock's P/B looks solid versus its industry's average P/B of 7.56. Over the past 12 months, ASO's P/B has been as high as 3.41 and as low as 1.93, with a median of 2.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ASO has a P/S ratio of 0.5. This compares to its industry's average P/S of 1.35.
If you're looking for another solid Leisure and Recreation Products value stock, take a look at Brunswick (BC - Free Report) . BC is a # 2 (Buy) stock with a Value score of A.
Brunswick sports a P/B ratio of 3.26 as well; this compares to its industry's price-to-book ratio of 7.56. In the past 52 weeks, BC's P/B has been as high as 5.50, as low as 3.26, with a median of 4.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Academy Sports and Outdoors and Brunswick are likely undervalued currently. And when considering the strength of its earnings outlook, ASO and BC sticks out as one of the market's strongest value stocks.
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Are These Consumer Discretionary Stocks a Great Value Stocks Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Academy Sports and Outdoors (ASO - Free Report) . ASO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that ASO holds a PEG ratio of 0.42. 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. ASO's industry currently sports an average PEG of 0.72. Over the last 12 months, ASO's PEG has been as high as 3.65 and as low as 0.33, with a median of 0.70.
Another notable valuation metric for ASO is its P/B ratio of 2.54. 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. This stock's P/B looks solid versus its industry's average P/B of 7.56. Over the past 12 months, ASO's P/B has been as high as 3.41 and as low as 1.93, with a median of 2.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ASO has a P/S ratio of 0.5. This compares to its industry's average P/S of 1.35.
If you're looking for another solid Leisure and Recreation Products value stock, take a look at Brunswick (BC - Free Report) . BC is a # 2 (Buy) stock with a Value score of A.
Brunswick sports a P/B ratio of 3.26 as well; this compares to its industry's price-to-book ratio of 7.56. In the past 52 weeks, BC's P/B has been as high as 5.50, as low as 3.26, with a median of 4.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Academy Sports and Outdoors and Brunswick are likely undervalued currently. And when considering the strength of its earnings outlook, ASO and BC sticks out as one of the market's strongest value stocks.