We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TGT vs. ROST: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in Retail - Discount Stores stocks are likely familiar with Target (TGT - Free Report) and Ross Stores (ROST - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Currently, Target has a Zacks Rank of #2 (Buy), while Ross Stores has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TGT likely has seen a stronger improvement to its earnings outlook than ROST has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
TGT currently has a forward P/E ratio of 15.85, while ROST has a forward P/E of 19.72. We also note that TGT has a PEG ratio of 0.96. 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. ROST currently has a PEG ratio of 1.97.
Another notable valuation metric for TGT is its P/B ratio of 8.57. 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, ROST has a P/B of 8.68.
These metrics, and several others, help TGT earn a Value grade of A, while ROST has been given a Value grade of C.
TGT sticks out from ROST in both our Zacks Rank and Style Scores models, so value investors will likely feel that TGT is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TGT vs. ROST: Which Stock Should Value Investors Buy Now?
Investors interested in Retail - Discount Stores stocks are likely familiar with Target (TGT - Free Report) and Ross Stores (ROST - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Currently, Target has a Zacks Rank of #2 (Buy), while Ross Stores has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TGT likely has seen a stronger improvement to its earnings outlook than ROST has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
TGT currently has a forward P/E ratio of 15.85, while ROST has a forward P/E of 19.72. We also note that TGT has a PEG ratio of 0.96. 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. ROST currently has a PEG ratio of 1.97.
Another notable valuation metric for TGT is its P/B ratio of 8.57. 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, ROST has a P/B of 8.68.
These metrics, and several others, help TGT earn a Value grade of A, while ROST has been given a Value grade of C.
TGT sticks out from ROST in both our Zacks Rank and Style Scores models, so value investors will likely feel that TGT is the better option right now.