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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 stocks offers value investors a better bang for their buck right now? We'll need to 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.
Currently, American Eagle Outfitters has a Zacks Rank of #1 (Strong Buy), while Boot Barn has a Zacks Rank of #5 (Strong 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 only part of the picture 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.
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.
AEO currently has a forward P/E ratio of 15.63, while BOOT has a forward P/E of 18.97. We also note that AEO has a PEG ratio of 0.68. 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. BOOT currently has a PEG ratio of 7.
Another notable valuation metric for AEO is its P/B ratio of 2.75. 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, BOOT has a P/B of 2.98.
These metrics, and several others, help AEO earn a Value grade of A, while BOOT has been given a Value grade of C.
AEO stands above BOOT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AEO is 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 stocks offers value investors a better bang for their buck right now? We'll need to 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.
Currently, American Eagle Outfitters has a Zacks Rank of #1 (Strong Buy), while Boot Barn has a Zacks Rank of #5 (Strong 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 only part of the picture 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.
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.
AEO currently has a forward P/E ratio of 15.63, while BOOT has a forward P/E of 18.97. We also note that AEO has a PEG ratio of 0.68. 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. BOOT currently has a PEG ratio of 7.
Another notable valuation metric for AEO is its P/B ratio of 2.75. 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, BOOT has a P/B of 2.98.
These metrics, and several others, help AEO earn a Value grade of A, while BOOT has been given a Value grade of C.
AEO stands above BOOT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AEO is the superior value option right now.