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.
ASO or POOL: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors with an interest in Leisure and Recreation Products stocks have likely encountered both Academy Sports and Outdoors, Inc. (ASO - Free Report) and Pool Corp. (POOL - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Academy Sports and Outdoors, Inc. has a Zacks Rank of #1 (Strong Buy), while Pool Corp. has 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 ASO is likely seeing its earnings outlook improve to a greater extent. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ASO currently has a forward P/E ratio of 5.53, while POOL has a forward P/E of 21.86. We also note that ASO has a PEG ratio of 0.37. 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. POOL currently has a PEG ratio of 2.19.
Another notable valuation metric for ASO is its P/B ratio of 2.34. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, POOL has a P/B of 13.67.
These metrics, and several others, help ASO earn a Value grade of A, while POOL has been given a Value grade of D.
ASO has seen stronger estimate revision activity and sports more attractive valuation metrics than POOL, so it seems like value investors will conclude that ASO is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ASO or POOL: Which Is the Better Value Stock Right Now?
Investors with an interest in Leisure and Recreation Products stocks have likely encountered both Academy Sports and Outdoors, Inc. (ASO - Free Report) and Pool Corp. (POOL - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Academy Sports and Outdoors, Inc. has a Zacks Rank of #1 (Strong Buy), while Pool Corp. has 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 ASO is likely seeing its earnings outlook improve to a greater extent. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ASO currently has a forward P/E ratio of 5.53, while POOL has a forward P/E of 21.86. We also note that ASO has a PEG ratio of 0.37. 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. POOL currently has a PEG ratio of 2.19.
Another notable valuation metric for ASO is its P/B ratio of 2.34. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, POOL has a P/B of 13.67.
These metrics, and several others, help ASO earn a Value grade of A, while POOL has been given a Value grade of D.
ASO has seen stronger estimate revision activity and sports more attractive valuation metrics than POOL, so it seems like value investors will conclude that ASO is the superior option right now.