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DKS vs. FIVE: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Dick's Sporting Goods (DKS - Free Report) or Five Below (FIVE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Dick's Sporting Goods has a Zacks Rank of #2 (Buy), while Five Below has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DKS likely has seen a stronger improvement to its earnings outlook than FIVE has recently. 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 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.
DKS currently has a forward P/E ratio of 10.20, while FIVE has a forward P/E of 38.03. We also note that DKS has a PEG ratio of 1.88. 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. FIVE currently has a PEG ratio of 2.01.
Another notable valuation metric for DKS is its P/B ratio of 4.48. 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, FIVE has a P/B of 8.69.
Based on these metrics and many more, DKS holds a Value grade of A, while FIVE has a Value grade of C.
DKS sticks out from FIVE in both our Zacks Rank and Style Scores models, so value investors will likely feel that DKS is the better option right now.
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DKS vs. FIVE: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Dick's Sporting Goods (DKS - Free Report) or Five Below (FIVE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Dick's Sporting Goods has a Zacks Rank of #2 (Buy), while Five Below has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DKS likely has seen a stronger improvement to its earnings outlook than FIVE has recently. 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 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.
DKS currently has a forward P/E ratio of 10.20, while FIVE has a forward P/E of 38.03. We also note that DKS has a PEG ratio of 1.88. 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. FIVE currently has a PEG ratio of 2.01.
Another notable valuation metric for DKS is its P/B ratio of 4.48. 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, FIVE has a P/B of 8.69.
Based on these metrics and many more, DKS holds a Value grade of A, while FIVE has a Value grade of C.
DKS sticks out from FIVE in both our Zacks Rank and Style Scores models, so value investors will likely feel that DKS is the better option right now.