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ARHS or TSCO: Which Is the Better Value Stock Right 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Arhaus, Inc. has a Zacks Rank of #2 (Buy), while Tractor Supply has a Zacks Rank of #3 (Hold) right now. This means that ARHS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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 7.92, while TSCO has a forward P/E of 21.42. We also note that ARHS has a PEG ratio of 0.57. 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. TSCO currently has a PEG ratio of 2.12.
Another notable valuation metric for ARHS is its P/B ratio of 8.01. 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, TSCO has a P/B of 12.75.
Based on these metrics and many more, ARHS holds a Value grade of A, while TSCO has a Value grade of C.
ARHS stands above TSCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARHS is the superior value option right now.
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ARHS or TSCO: Which Is the Better Value Stock Right 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Arhaus, Inc. has a Zacks Rank of #2 (Buy), while Tractor Supply has a Zacks Rank of #3 (Hold) right now. This means that ARHS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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 7.92, while TSCO has a forward P/E of 21.42. We also note that ARHS has a PEG ratio of 0.57. 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. TSCO currently has a PEG ratio of 2.12.
Another notable valuation metric for ARHS is its P/B ratio of 8.01. 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, TSCO has a P/B of 12.75.
Based on these metrics and many more, ARHS holds a Value grade of A, while TSCO has a Value grade of C.
ARHS stands above TSCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARHS is the superior value option right now.