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FIVE vs. TSCO: Which Stock Is the Better Value Option?
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Investors with an interest in Retail - Miscellaneous stocks have likely encountered both Five Below (FIVE - Free Report) and Tractor Supply (TSCO - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Five Below and Tractor Supply are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that FIVE likely has seen a stronger improvement to its earnings outlook than TSCO has recently. But this is only part of the picture 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 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.
FIVE currently has a forward P/E ratio of 23.24, while TSCO has a forward P/E of 27.70. We also note that FIVE has a PEG ratio of 1.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSCO currently has a PEG ratio of 3.56.
Another notable valuation metric for FIVE is its P/B ratio of 3.81. 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, TSCO has a P/B of 13.24.
These are just a few of the metrics contributing to FIVE's Value grade of B and TSCO's Value grade of C.
FIVE has seen stronger estimate revision activity and sports more attractive valuation metrics than TSCO, so it seems like value investors will conclude that FIVE is the superior option right now.
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FIVE vs. TSCO: Which Stock Is the Better Value Option?
Investors with an interest in Retail - Miscellaneous stocks have likely encountered both Five Below (FIVE - Free Report) and Tractor Supply (TSCO - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Five Below and Tractor Supply are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that FIVE likely has seen a stronger improvement to its earnings outlook than TSCO has recently. But this is only part of the picture 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 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.
FIVE currently has a forward P/E ratio of 23.24, while TSCO has a forward P/E of 27.70. We also note that FIVE has a PEG ratio of 1.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSCO currently has a PEG ratio of 3.56.
Another notable valuation metric for FIVE is its P/B ratio of 3.81. 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, TSCO has a P/B of 13.24.
These are just a few of the metrics contributing to FIVE's Value grade of B and TSCO's Value grade of C.
FIVE has seen stronger estimate revision activity and sports more attractive valuation metrics than TSCO, so it seems like value investors will conclude that FIVE is the superior option right now.