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TPX vs. HD: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Retail - Home Furnishings sector have probably already heard of Tempur Sealy and Home Depot (HD - 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 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.
Both Tempur Sealy and Home Depot have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
TPX currently has a forward P/E ratio of 20.73, while HD has a forward P/E of 27.08. We also note that TPX has a PEG ratio of 1.91. 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. HD currently has a PEG ratio of 4.31.
Another notable valuation metric for TPX is its P/B ratio of 18.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HD has a P/B of 70.28.
Based on these metrics and many more, TPX holds a Value grade of B, while HD has a Value grade of C.
Both TPX and HD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TPX is the superior value option right now.
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TPX vs. HD: Which Stock Is the Better Value Option?
Investors interested in stocks from the Retail - Home Furnishings sector have probably already heard of Tempur Sealy and Home Depot (HD - 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 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.
Both Tempur Sealy and Home Depot have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
TPX currently has a forward P/E ratio of 20.73, while HD has a forward P/E of 27.08. We also note that TPX has a PEG ratio of 1.91. 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. HD currently has a PEG ratio of 4.31.
Another notable valuation metric for TPX is its P/B ratio of 18.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HD has a P/B of 70.28.
Based on these metrics and many more, TPX holds a Value grade of B, while HD has a Value grade of C.
Both TPX and HD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TPX is the superior value option right now.