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ODP or FIVE: Which Is the Better Value Stock Right Now?
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Investors interested in Retail - Miscellaneous stocks are likely familiar with ODP Corp. (ODP - Free Report) and Five Below (FIVE - 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.
Currently, ODP Corp. has a Zacks Rank of #2 (Buy), while Five Below has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ODP likely has seen a stronger improvement to its earnings outlook than FIVE has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
ODP currently has a forward P/E ratio of 8.94, while FIVE has a forward P/E of 29.82. We also note that ODP has a PEG ratio of 0.64. 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. FIVE currently has a PEG ratio of 1.39.
Another notable valuation metric for ODP is its P/B ratio of 1.55. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FIVE has a P/B of 6.28.
These are just a few of the metrics contributing to ODP's Value grade of A and FIVE's Value grade of C.
ODP sticks out from FIVE in both our Zacks Rank and Style Scores models, so value investors will likely feel that ODP is the better option right now.
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ODP or FIVE: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Miscellaneous stocks are likely familiar with ODP Corp. (ODP - Free Report) and Five Below (FIVE - 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.
Currently, ODP Corp. has a Zacks Rank of #2 (Buy), while Five Below has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ODP likely has seen a stronger improvement to its earnings outlook than FIVE has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
ODP currently has a forward P/E ratio of 8.94, while FIVE has a forward P/E of 29.82. We also note that ODP has a PEG ratio of 0.64. 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. FIVE currently has a PEG ratio of 1.39.
Another notable valuation metric for ODP is its P/B ratio of 1.55. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FIVE has a P/B of 6.28.
These are just a few of the metrics contributing to ODP's Value grade of A and FIVE's Value grade of C.
ODP sticks out from FIVE in both our Zacks Rank and Style Scores models, so value investors will likely feel that ODP is the better option right now.