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ZUMZ vs. BOOT: Which Stock Should Value Investors Buy Now?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Zumiez (ZUMZ - Free Report) and Boot Barn (BOOT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Zumiez and Boot Barn are both sporting a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ZUMZ currently has a forward P/E ratio of 13.75, while BOOT has a forward P/E of 21.65. We also note that ZUMZ has a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BOOT currently has a PEG ratio of 1.27.
Another notable valuation metric for ZUMZ is its P/B ratio of 1.70. 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, BOOT has a P/B of 3.52.
Based on these metrics and many more, ZUMZ holds a Value grade of B, while BOOT has a Value grade of C.
Both ZUMZ and BOOT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ZUMZ is the superior value option right now.
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ZUMZ vs. BOOT: Which Stock Should Value Investors Buy Now?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Zumiez (ZUMZ - Free Report) and Boot Barn (BOOT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Zumiez and Boot Barn are both sporting a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ZUMZ currently has a forward P/E ratio of 13.75, while BOOT has a forward P/E of 21.65. We also note that ZUMZ has a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BOOT currently has a PEG ratio of 1.27.
Another notable valuation metric for ZUMZ is its P/B ratio of 1.70. 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, BOOT has a P/B of 3.52.
Based on these metrics and many more, ZUMZ holds a Value grade of B, while BOOT has a Value grade of C.
Both ZUMZ and BOOT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ZUMZ is the superior value option right now.