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OLLI or CHWY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ollie's Bargain Outlet (OLLI - Free Report) and Chewy (CHWY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Ollie's Bargain Outlet and Chewy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OLLI is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
OLLI currently has a forward P/E ratio of 26.79, while CHWY has a forward P/E of 30.56. We also note that OLLI has a PEG ratio of 0.93. 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. CHWY currently has a PEG ratio of 1.29.
Another notable valuation metric for OLLI is its P/B ratio of 3.20. 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, CHWY has a P/B of 20.56.
These are just a few of the metrics contributing to OLLI's Value grade of B and CHWY's Value grade of D.
OLLI has seen stronger estimate revision activity and sports more attractive valuation metrics than CHWY, so it seems like value investors will conclude that OLLI is the superior option right now.
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OLLI or CHWY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ollie's Bargain Outlet (OLLI - Free Report) and Chewy (CHWY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Ollie's Bargain Outlet and Chewy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OLLI is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
OLLI currently has a forward P/E ratio of 26.79, while CHWY has a forward P/E of 30.56. We also note that OLLI has a PEG ratio of 0.93. 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. CHWY currently has a PEG ratio of 1.29.
Another notable valuation metric for OLLI is its P/B ratio of 3.20. 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, CHWY has a P/B of 20.56.
These are just a few of the metrics contributing to OLLI's Value grade of B and CHWY's Value grade of D.
OLLI has seen stronger estimate revision activity and sports more attractive valuation metrics than CHWY, so it seems like value investors will conclude that OLLI is the superior option right now.