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ARHS vs. TSCO: Which Stock Should Value Investors Buy Now?
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Investors interested in Retail - Miscellaneous stocks are likely familiar with Arhaus, Inc. (ARHS - Free Report) and Tractor Supply (TSCO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Arhaus, Inc. and Tractor Supply have 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. But this is only part of the picture for value investors.
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.
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.
ARHS currently has a forward P/E ratio of 9.26, while TSCO has a forward P/E of 21.13. We also note that ARHS has a PEG ratio of 0.67. 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. TSCO currently has a PEG ratio of 2.16.
Another notable valuation metric for ARHS is its P/B ratio of 11.37. 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, TSCO has a P/B of 12.57.
These metrics, and several others, help ARHS earn a Value grade of A, while TSCO has been given a Value grade of C.
Both ARHS and TSCO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARHS is the superior value option right now.
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ARHS vs. TSCO: Which Stock Should Value Investors Buy Now?
Investors interested in Retail - Miscellaneous stocks are likely familiar with Arhaus, Inc. (ARHS - Free Report) and Tractor Supply (TSCO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Arhaus, Inc. and Tractor Supply have 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. But this is only part of the picture for value investors.
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.
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.
ARHS currently has a forward P/E ratio of 9.26, while TSCO has a forward P/E of 21.13. We also note that ARHS has a PEG ratio of 0.67. 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. TSCO currently has a PEG ratio of 2.16.
Another notable valuation metric for ARHS is its P/B ratio of 11.37. 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, TSCO has a P/B of 12.57.
These metrics, and several others, help ARHS earn a Value grade of A, while TSCO has been given a Value grade of C.
Both ARHS and TSCO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARHS is the superior value option right now.