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HVT vs. WSM: 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 Haverty Furniture (HVT - Free Report) and Williams-Sonoma (WSM - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Haverty Furniture has a Zacks Rank of #2 (Buy), while Williams-Sonoma has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HVT likely has seen a stronger improvement to its earnings outlook than WSM has recently. But this is only part of the picture for value investors.
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 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.
HVT currently has a forward P/E ratio of 15.65, while WSM has a forward P/E of 19.15. We also note that HVT has a PEG ratio of 1.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WSM currently has a PEG ratio of 2.64.
Another notable valuation metric for HVT is its P/B ratio of 1.08. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WSM has a P/B of 9.3.
These metrics, and several others, help HVT earn a Value grade of A, while WSM has been given a Value grade of C.
HVT sticks out from WSM in both our Zacks Rank and Style Scores models, so value investors will likely feel that HVT is the better option right now.
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HVT vs. WSM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Retail - Home Furnishings sector have probably already heard of Haverty Furniture (HVT - Free Report) and Williams-Sonoma (WSM - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Haverty Furniture has a Zacks Rank of #2 (Buy), while Williams-Sonoma has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HVT likely has seen a stronger improvement to its earnings outlook than WSM has recently. But this is only part of the picture for value investors.
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 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.
HVT currently has a forward P/E ratio of 15.65, while WSM has a forward P/E of 19.15. We also note that HVT has a PEG ratio of 1.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WSM currently has a PEG ratio of 2.64.
Another notable valuation metric for HVT is its P/B ratio of 1.08. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WSM has a P/B of 9.3.
These metrics, and several others, help HVT earn a Value grade of A, while WSM has been given a Value grade of C.
HVT sticks out from WSM in both our Zacks Rank and Style Scores models, so value investors will likely feel that HVT is the better option right now.