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DKS or FIVE: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Retail - Miscellaneous sector have probably already heard of Dick's Sporting Goods (DKS - Free Report) and Five Below (FIVE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both Dick's Sporting Goods and Five Below are holding a Zacks Rank of # 2 (Buy). 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 piece of the puzzle 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 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.
DKS currently has a forward P/E ratio of 11.23, while FIVE has a forward P/E of 49.81. We also note that DKS has a PEG ratio of 1.60. 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. FIVE currently has a PEG ratio of 1.66.
Another notable valuation metric for DKS is its P/B ratio of 1.84. 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, FIVE has a P/B of 14.03.
These are just a few of the metrics contributing to DKS's Value grade of A and FIVE's Value grade of F.
Both DKS and FIVE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DKS is the superior value option right now.
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DKS or FIVE: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Retail - Miscellaneous sector have probably already heard of Dick's Sporting Goods (DKS - Free Report) and Five Below (FIVE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both Dick's Sporting Goods and Five Below are holding a Zacks Rank of # 2 (Buy). 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 piece of the puzzle 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 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.
DKS currently has a forward P/E ratio of 11.23, while FIVE has a forward P/E of 49.81. We also note that DKS has a PEG ratio of 1.60. 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. FIVE currently has a PEG ratio of 1.66.
Another notable valuation metric for DKS is its P/B ratio of 1.84. 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, FIVE has a P/B of 14.03.
These are just a few of the metrics contributing to DKS's Value grade of A and FIVE's Value grade of F.
Both DKS and FIVE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DKS is the superior value option right now.