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HIBB or BURBY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Hibbett (HIBB - Free Report) and Burberry Group PLC (BURBY - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Hibbett has a Zacks Rank of #2 (Buy), while Burberry Group PLC has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HIBB 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 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 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.
HIBB currently has a forward P/E ratio of 9.08, while BURBY has a forward P/E of 15.92. We also note that HIBB has a PEG ratio of 4.04. 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. BURBY currently has a PEG ratio of 11.37.
Another notable valuation metric for HIBB is its P/B ratio of 2.57. 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, BURBY has a P/B of 4.31.
These metrics, and several others, help HIBB earn a Value grade of A, while BURBY has been given a Value grade of C.
HIBB stands above BURBY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HIBB is the superior value option right now.
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HIBB or BURBY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Hibbett (HIBB - Free Report) and Burberry Group PLC (BURBY - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Hibbett has a Zacks Rank of #2 (Buy), while Burberry Group PLC has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HIBB 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 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 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.
HIBB currently has a forward P/E ratio of 9.08, while BURBY has a forward P/E of 15.92. We also note that HIBB has a PEG ratio of 4.04. 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. BURBY currently has a PEG ratio of 11.37.
Another notable valuation metric for HIBB is its P/B ratio of 2.57. 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, BURBY has a P/B of 4.31.
These metrics, and several others, help HIBB earn a Value grade of A, while BURBY has been given a Value grade of C.
HIBB stands above BURBY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HIBB is the superior value option right now.