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Are Investors Undervaluing These Consumer Discretionary Stocks Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Academy Sports and Outdoors (ASO). ASO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We also note that ASO holds a PEG ratio of 0.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASO's industry has an average PEG of 0.70 right now. ASO's PEG has been as high as 3.65 and as low as 0.34, with a median of 1.98, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ASO has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.38.

Investors could also keep in mind OneWater Marine (ONEW), an Leisure and Recreation Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Furthermore, OneWater Marine holds a P/B ratio of 3 and its industry's price-to-book ratio is 8.80. ONEW's P/B has been as high as 3.84, as low as 2.35, with a median of 2.95 over the past 12 months.

These are just a handful of the figures considered in Academy Sports and Outdoors and OneWater Marine's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ASO and ONEW is an impressive value stock right now.


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Academy Sports and Outdoors, Inc. (ASO) : Free Stock Analysis Report
 
OneWater Marine Inc. (ONEW) : Free Stock Analysis Report
 
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