Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Hibbett Sports (HIBB - Free Report) or Regis (RGS - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Hibbett Sports has a Zacks Rank of #2 (Buy), while Regis has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HIBB likely has seen a stronger improvement to its earnings outlook than RGS has recently. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HIBB currently has a forward P/E ratio of 11.79, while RGS has a forward P/E of 18.42. We also note that HIBB has a PEG ratio of 1.08. 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. RGS currently has a PEG ratio of 2.46.
Another notable valuation metric for HIBB is its P/B ratio of 1.38. 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, RGS has a P/B of 2.03.
These metrics, and several others, help HIBB earn a Value grade of A, while RGS has been given a Value grade of D.
HIBB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HIBB is likely the superior value option right now.