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YETI vs. POOL: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Yeti (YETI - Free Report) or Pool Corp. (POOL - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Yeti and Pool Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that YETI has an improving earnings outlook. However, value investors will care about much more than just this.

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 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.

YETI currently has a forward P/E ratio of 15.81, while POOL has a forward P/E of 18.32. We also note that YETI has a PEG ratio of 1.21. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. POOL currently has a PEG ratio of 2.71.

Another notable valuation metric for YETI is its P/B ratio of 5.65. 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, POOL has a P/B of 5.78.

Based on these metrics and many more, YETI holds a Value grade of B, while POOL has a Value grade of C.

YETI sticks out from POOL in both our Zacks Rank and Style Scores models, so value investors will likely feel that YETI is the better option right now.

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