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MCFT vs. POOL: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of MasterCraft Boat Holdings, Inc. (MCFT - Free Report) and Pool Corp. (POOL - 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, MasterCraft Boat Holdings, Inc. has a Zacks Rank of #2 (Buy), while Pool Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MCFT has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
MCFT currently has a forward P/E ratio of 6.53, while POOL has a forward P/E of 30.63. We also note that MCFT has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. POOL currently has a PEG ratio of 1.30.
Another notable valuation metric for MCFT is its P/B ratio of 4.70. 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, POOL has a P/B of 33.82.
These are just a few of the metrics contributing to MCFT's Value grade of A and POOL's Value grade of D.
MCFT has seen stronger estimate revision activity and sports more attractive valuation metrics than POOL, so it seems like value investors will conclude that MCFT is the superior option right now.
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MCFT vs. POOL: Which Stock Is the Better Value Option?
Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of MasterCraft Boat Holdings, Inc. (MCFT - Free Report) and Pool Corp. (POOL - 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, MasterCraft Boat Holdings, Inc. has a Zacks Rank of #2 (Buy), while Pool Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MCFT has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
MCFT currently has a forward P/E ratio of 6.53, while POOL has a forward P/E of 30.63. We also note that MCFT has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. POOL currently has a PEG ratio of 1.30.
Another notable valuation metric for MCFT is its P/B ratio of 4.70. 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, POOL has a P/B of 33.82.
These are just a few of the metrics contributing to MCFT's Value grade of A and POOL's Value grade of D.
MCFT has seen stronger estimate revision activity and sports more attractive valuation metrics than POOL, so it seems like value investors will conclude that MCFT is the superior option right now.