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ASO vs. POOL: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Academy Sports and Outdoors, Inc. (ASO - Free Report) or Pool Corp. (POOL - 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.
Academy Sports and Outdoors, Inc. and Pool Corp. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, 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 just one factor that value investors are interested in.
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.
ASO currently has a forward P/E ratio of 5.90, while POOL has a forward P/E of 20.84. We also note that ASO has a PEG ratio of 0.64. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. POOL currently has a PEG ratio of 2.08.
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 13.19.
These metrics, and several others, help ASO earn a Value grade of A, while POOL has been given a Value grade of D.
ASO sticks out from POOL in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASO is the better option right now.
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ASO vs. POOL: Which Stock Is the Better Value Option?
Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Academy Sports and Outdoors, Inc. (ASO - Free Report) or Pool Corp. (POOL - 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.
Academy Sports and Outdoors, Inc. and Pool Corp. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, 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 just one factor that value investors are interested in.
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.
ASO currently has a forward P/E ratio of 5.90, while POOL has a forward P/E of 20.84. We also note that ASO has a PEG ratio of 0.64. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. POOL currently has a PEG ratio of 2.08.
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 13.19.
These metrics, and several others, help ASO earn a Value grade of A, while POOL has been given a Value grade of D.
ASO sticks out from POOL in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASO is the better option right now.