DKS vs. TSCO: Which Stock Should Investors Buy Now?
IInvestors looking for stocks in the Retail – Miscellaneous sector might consider either Dick’s Sporting Goods (DKS) or Tractor Supply (TSCO). But which of these two stocks is more attractive to value investors? It will take a closer look to find out.
There are many strategies for discovering value stocks, but we’ve found that pairing a strong Zacks ranking with an impressive rating in the Value category of our style scoring system produces the best returns. The proven Zacks Rank focuses on companies with positive review trends, and our style scores highlight stocks with specific characteristics.
Currently, Dick’s Sporting Goods and Tractor Supply have a Zacks # 2 (Buy) ranking. This system focuses on companies that have seen positive revisions to their earnings estimates, so investors should feel comfortable knowing that these stocks have an improving earnings outlook. But that’s just one factor that interests value investors.
Value investors analyze a variety of traditional and proven metrics to help find companies they feel are undervalued at their current price levels.
The Style Score Value takes into account a variety of key fundamental metrics including P / E Ratio, P / S Ratio, Earnings Yield, Cash Flow Per Share, and a number of other commonly used key metrics. by value investors.
DKS currently has a forward P / E ratio of 9.74, while TSCO has a forward P / E of 24.84. We also note that DKS has a PEG ratio of 0.76. This popular figure is similar to the widely used P / E ratio, but the PEG ratio also takes into account the expected growth rate of a company’s EPS. TSCO currently has a PEG ratio of 2.70.
Another notable valuation metric for DKS is its P / N ratio of 3.71. The P / B ratio is used to compare the market value of a stock with its book value, which is defined as total assets minus total liabilities. For comparison, TSCO has a P / B of 11.78.
These are just a few of the metrics contributing to the DKS Value rating of A and the TSCO Value rating of C.
DKS and TSCO are both impressive stocks with solid earnings prospects, but based on these valuation numbers, we believe DKS is the top value option right now.
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DICK’S Sporting Goods, Inc. (DKS): Free Stock Analysis Report
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