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AEO vs. BOOT: Which Stock Is the Better Value Option?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with American Eagle Outfitters (AEO - Free Report) and Boot Barn (BOOT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, American Eagle Outfitters has a Zacks Rank of #2 (Buy), while Boot Barn has a Zacks Rank of #4 (Sell). This means that AEO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AEO currently has a forward P/E ratio of 14.59, while BOOT has a forward P/E of 15.41. We also note that AEO has a PEG ratio of 0.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BOOT currently has a PEG ratio of 6.82.
Another notable valuation metric for AEO is its P/B ratio of 2.20. 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, BOOT has a P/B of 2.66.
These are just a few of the metrics contributing to AEO's Value grade of A and BOOT's Value grade of C.
AEO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AEO is likely the superior value option right now.
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AEO vs. BOOT: Which Stock Is the Better Value Option?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with American Eagle Outfitters (AEO - Free Report) and Boot Barn (BOOT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, American Eagle Outfitters has a Zacks Rank of #2 (Buy), while Boot Barn has a Zacks Rank of #4 (Sell). This means that AEO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AEO currently has a forward P/E ratio of 14.59, while BOOT has a forward P/E of 15.41. We also note that AEO has a PEG ratio of 0.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BOOT currently has a PEG ratio of 6.82.
Another notable valuation metric for AEO is its P/B ratio of 2.20. 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, BOOT has a P/B of 2.66.
These are just a few of the metrics contributing to AEO's Value grade of A and BOOT's Value grade of C.
AEO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AEO is likely the superior value option right now.