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TGT vs. TJX: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Target (TGT - Free Report) or TJX (TJX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Target and TJX are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that TGT'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 are also interested in a number of tried-and-true valuation metrics that help show when 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.
TGT currently has a forward P/E ratio of 15.02, while TJX has a forward P/E of 26.57. We also note that TGT has a PEG ratio of 2.47. 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. TJX currently has a PEG ratio of 2.62.
Another notable valuation metric for TGT is its P/B ratio of 4.02. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TJX has a P/B of 14.31.
These metrics, and several others, help TGT earn a Value grade of B, while TJX has been given a Value grade of D.
TGT has seen stronger estimate revision activity and sports more attractive valuation metrics than TJX, so it seems like value investors will conclude that TGT is the superior option right now.
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TGT vs. TJX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Target (TGT - Free Report) or TJX (TJX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Target and TJX are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that TGT'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 are also interested in a number of tried-and-true valuation metrics that help show when 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.
TGT currently has a forward P/E ratio of 15.02, while TJX has a forward P/E of 26.57. We also note that TGT has a PEG ratio of 2.47. 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. TJX currently has a PEG ratio of 2.62.
Another notable valuation metric for TGT is its P/B ratio of 4.02. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TJX has a P/B of 14.31.
These metrics, and several others, help TGT earn a Value grade of B, while TJX has been given a Value grade of D.
TGT has seen stronger estimate revision activity and sports more attractive valuation metrics than TJX, so it seems like value investors will conclude that TGT is the superior option right now.