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ROST vs. TJX: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Ross Stores (ROST - Free Report) or TJX (TJX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ross Stores is sporting a Zacks Rank of #2 (Buy), while TJX has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ROST is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ROST currently has a forward P/E ratio of 23.28, while TJX has a forward P/E of 24.81. We also note that ROST has a PEG ratio of 2.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TJX currently has a PEG ratio of 2.23.
Another notable valuation metric for ROST is its P/B ratio of 9.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TJX has a P/B of 16.01.
Based on these metrics and many more, ROST holds a Value grade of B, while TJX has a Value grade of C.
ROST has seen stronger estimate revision activity and sports more attractive valuation metrics than TJX, so it seems like value investors will conclude that ROST is the superior option right now.
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ROST vs. TJX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Ross Stores (ROST - Free Report) or TJX (TJX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ross Stores is sporting a Zacks Rank of #2 (Buy), while TJX has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ROST is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ROST currently has a forward P/E ratio of 23.28, while TJX has a forward P/E of 24.81. We also note that ROST has a PEG ratio of 2.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TJX currently has a PEG ratio of 2.23.
Another notable valuation metric for ROST is its P/B ratio of 9.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TJX has a P/B of 16.01.
Based on these metrics and many more, ROST holds a Value grade of B, while TJX has a Value grade of C.
ROST has seen stronger estimate revision activity and sports more attractive valuation metrics than TJX, so it seems like value investors will conclude that ROST is the superior option right now.