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RICK or MTN: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either RCI Hospitality (RICK - Free Report) or Vail Resorts (MTN - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, RCI Hospitality is sporting a Zacks Rank of #2 (Buy), while Vail Resorts has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RICK has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RICK currently has a forward P/E ratio of 11.60, while MTN has a forward P/E of 23.22. We also note that RICK has a PEG ratio of 0.97. 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. MTN currently has a PEG ratio of 4.97.
Another notable valuation metric for RICK is its P/B ratio of 2.65. 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, MTN has a P/B of 4.66.
These metrics, and several others, help RICK earn a Value grade of A, while MTN has been given a Value grade of C.
RICK 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 RICK is likely the superior value option right now.
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RICK or MTN: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either RCI Hospitality (RICK - Free Report) or Vail Resorts (MTN - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, RCI Hospitality is sporting a Zacks Rank of #2 (Buy), while Vail Resorts has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RICK has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RICK currently has a forward P/E ratio of 11.60, while MTN has a forward P/E of 23.22. We also note that RICK has a PEG ratio of 0.97. 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. MTN currently has a PEG ratio of 4.97.
Another notable valuation metric for RICK is its P/B ratio of 2.65. 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, MTN has a P/B of 4.66.
These metrics, and several others, help RICK earn a Value grade of A, while MTN has been given a Value grade of C.
RICK 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 RICK is likely the superior value option right now.