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DG vs. TJX: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Dollar General (DG - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Dollar General and TJX are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that DG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
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.
DG currently has a forward P/E ratio of 23.91, while TJX has a forward P/E of 28.26. We also note that DG has a PEG ratio of 1.96. 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. TJX currently has a PEG ratio of 2.69.
Another notable valuation metric for DG is its P/B ratio of 6.71. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TJX has a P/B of 9.93.
These are just a few of the metrics contributing to DG's Value grade of B and TJX's Value grade of D.
DG stands above TJX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DG is the superior value option right now.
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DG vs. TJX: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Dollar General (DG - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Dollar General and TJX are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that DG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
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.
DG currently has a forward P/E ratio of 23.91, while TJX has a forward P/E of 28.26. We also note that DG has a PEG ratio of 1.96. 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. TJX currently has a PEG ratio of 2.69.
Another notable valuation metric for DG is its P/B ratio of 6.71. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TJX has a P/B of 9.93.
These are just a few of the metrics contributing to DG's Value grade of B and TJX's Value grade of D.
DG stands above TJX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DG is the superior value option right now.