Which Stock Is Right Now the Best Value?
Investors looking for Retail – Miscellaneous stocks may be familiar with Tractor Supply and Arhaus, Inc. Which stock offers value investors more bang for their buck? We’ll have to take a closer glance.
Combining a strong Zacks Rank and a highly rated grade in the Value section of our Style Scores program is the best way to identify great value stocks. Our Style Scores identify companies that have specific characteristics. The Zacks Rank favors stocks that have strong earnings estimate revision trends.
Arhaus, Tractor Supply, and Inc. have Zacks Ranks of #2 and #3, respectively, for right now. Investors should feel confident that ARHS will likely see its earnings outlook improve. This system emphasizes companies that have had positive earnings estimate revisions. However, this is only one part of the puzzle for value investors.
Value investors will also analyze a variety of traditional figures and metrics in order to determine if a company’s current share price is too low.
Our Value category highlights undervalued businesses by looking at key metrics like the P/E, earnings yield, cashflow per share and many other fundamentals that have been used over the years by value investors.
ARHS currently has an forward P/E ratio at 14.85 and TSCO at 21.21. ARHS’s PEG ratio is 0.92. This metric is similar to the P/E ratio. However the PEG number also considers the expected earnings growth rate of the stock. TSCO currently has a 2.07 PEG ratio.
ARHS’s 11.21 P/B ratio is another notable valuation metric. The P/B ratio is a way to compare a stock’s market value and its book value. It is defined as total assets minus all liabilities. TSCO, however, has a P/B 12.56.
These metrics, along with many others, help ARHS achieve a value grade of B. TSCO, however, has been given a value grade of C.
ARHS ranks above TSCO due to its strong earnings outlook. Based on these valuation figures, ARHS also appears to be the superior value option at this time.
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Arhaus, Inc. (ARHS) : Free Stock Analysis Report
Tractor Supply Company (TSCO) : Free Stock Analysis Report