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HIBB or FIVE: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Retail - Miscellaneous sector have probably already heard of Hibbett Sports (HIBB) and Five Below (FIVE). 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Hibbett Sports and Five Below are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HIBB is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

HIBB currently has a forward P/E ratio of 9.59, while FIVE has a forward P/E of 69.47. We also note that HIBB has a PEG ratio of 0.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FIVE currently has a PEG ratio of 3.56.

Another notable valuation metric for HIBB is its P/B ratio of 1.99. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FIVE has a P/B of 9.94.

Based on these metrics and many more, HIBB holds a Value grade of A, while FIVE has a Value grade of D.

HIBB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HIBB is likely the superior value option right now.


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Hibbett Sports, Inc. (HIBB): Free Stock Analysis Report
 
Five Below, Inc. (FIVE): Free Stock Analysis Report
 
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