Yahoo Finance BIG or TJX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Big Lots (BIG) or TJX (TJX). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Big Lots has a Zacks Rank of #2 (Buy), while TJX has a Zacks Rank of #5 (Strong Sell) right now. This means that BIG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BIG currently has a forward P/E ratio of 12.13, while TJX has a forward P/E of 29.86. We also note that BIG has a PEG ratio of 1.08. 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. TJX currently has a PEG ratio of 2.84.
Another notable valuation metric for BIG is its P/B ratio of 1.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TJX has a P/B of 14.31.
These metrics, and several others, help BIG earn a Value grade of A, while TJX has been given a Value grade of C.
BIG sticks out from TJX in both our Zacks Rank and Style Scores models, so value investors will likely feel that BIG is the better option right now.
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Big Lots, Inc. (BIG) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
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