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BURL vs. COST: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Retail - Discount Stores sector have probably already heard of Burlington Stores (BURL - Free Report) and Costco (COST - 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.
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 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.
Right now, Burlington Stores is sporting a Zacks Rank of #2 (Buy), while Costco has a Zacks Rank of #3 (Hold). This means that BURL'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.
BURL currently has a forward P/E ratio of 29.86, while COST has a forward P/E of 46.11. We also note that BURL has a PEG ratio of 1.29. 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. COST currently has a PEG ratio of 5.05.
Another notable valuation metric for BURL is its P/B ratio of 14.31. 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, COST has a P/B of 15.69.
These are just a few of the metrics contributing to BURL's Value grade of A and COST's Value grade of C.
BURL 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 BURL is likely the superior value option right now.
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BURL vs. COST: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Retail - Discount Stores sector have probably already heard of Burlington Stores (BURL - Free Report) and Costco (COST - 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.
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 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.
Right now, Burlington Stores is sporting a Zacks Rank of #2 (Buy), while Costco has a Zacks Rank of #3 (Hold). This means that BURL'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.
BURL currently has a forward P/E ratio of 29.86, while COST has a forward P/E of 46.11. We also note that BURL has a PEG ratio of 1.29. 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. COST currently has a PEG ratio of 5.05.
Another notable valuation metric for BURL is its P/B ratio of 14.31. 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, COST has a P/B of 15.69.
These are just a few of the metrics contributing to BURL's Value grade of A and COST's Value grade of C.
BURL 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 BURL is likely the superior value option right now.