We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DKS vs. FIVE: Which Stock Is the Better Value Option?
Read MoreHide Full Article
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.
View the Zacks #1 Rank List
Image: Bigstock
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.