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GO or OLLI: Which Is the Better Value Stock Right Now?
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Investors with an interest in Consumer Products - Staples stocks have likely encountered both Grocery Outlet Holding Corp. (GO - Free Report) and Ollie's Bargain Outlet (OLLI - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Grocery Outlet Holding Corp. has a Zacks Rank of #2 (Buy), while Ollie's Bargain Outlet has a Zacks Rank of #3 (Hold). This means that GO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GO currently has a forward P/E ratio of 21.99, while OLLI has a forward P/E of 24.92. We also note that GO has a PEG ratio of 2.01. 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. OLLI currently has a PEG ratio of 2.41.
Another notable valuation metric for GO is its P/B ratio of 2.11. 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, OLLI has a P/B of 3.25.
Based on these metrics and many more, GO holds a Value grade of B, while OLLI has a Value grade of C.
GO stands above OLLI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GO is the superior value option right now.
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GO or OLLI: Which Is the Better Value Stock Right Now?
Investors with an interest in Consumer Products - Staples stocks have likely encountered both Grocery Outlet Holding Corp. (GO - Free Report) and Ollie's Bargain Outlet (OLLI - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Grocery Outlet Holding Corp. has a Zacks Rank of #2 (Buy), while Ollie's Bargain Outlet has a Zacks Rank of #3 (Hold). This means that GO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GO currently has a forward P/E ratio of 21.99, while OLLI has a forward P/E of 24.92. We also note that GO has a PEG ratio of 2.01. 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. OLLI currently has a PEG ratio of 2.41.
Another notable valuation metric for GO is its P/B ratio of 2.11. 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, OLLI has a P/B of 3.25.
Based on these metrics and many more, GO holds a Value grade of B, while OLLI has a Value grade of C.
GO stands above OLLI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GO is the superior value option right now.