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DLTR vs. TJX: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Retail - Discount Stores stocks have likely encountered both Dollar Tree (DLTR - Free Report) and TJX (TJX - 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.
Dollar Tree has a Zacks Rank of #2 (Buy), while TJX has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DLTR has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
DLTR currently has a forward P/E ratio of 20.62, while TJX has a forward P/E of 21.37. We also note that DLTR has a PEG ratio of 1.33. 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. TJX currently has a PEG ratio of 2.04.
Another notable valuation metric for DLTR is its P/B ratio of 4.58. 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, TJX has a P/B of 13.96.
Based on these metrics and many more, DLTR holds a Value grade of B, while TJX has a Value grade of C.
DLTR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DLTR is likely the superior value option right now.
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DLTR vs. TJX: Which Stock Should Value Investors Buy Now?
Investors with an interest in Retail - Discount Stores stocks have likely encountered both Dollar Tree (DLTR - Free Report) and TJX (TJX - 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.
Dollar Tree has a Zacks Rank of #2 (Buy), while TJX has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DLTR has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
DLTR currently has a forward P/E ratio of 20.62, while TJX has a forward P/E of 21.37. We also note that DLTR has a PEG ratio of 1.33. 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. TJX currently has a PEG ratio of 2.04.
Another notable valuation metric for DLTR is its P/B ratio of 4.58. 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, TJX has a P/B of 13.96.
Based on these metrics and many more, DLTR holds a Value grade of B, while TJX has a Value grade of C.
DLTR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DLTR is likely the superior value option right now.