Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Acco Brands (ACCO) or SharkNinja, Inc. (SN). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Acco Brands has a Zacks Rank of #2 (Buy), while SharkNinja, Inc. has a Zacks Rank of #3 (Hold). This means that ACCO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
ACCO currently has a forward P/E ratio of 4.43, while SN has a forward P/E of 21.83. We also note that ACCO has a PEG ratio of 0.74. 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. SN currently has a PEG ratio of 1.68.
Another notable valuation metric for ACCO is its P/B ratio of 0.52. 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, SN has a P/B of 6.84.
These metrics, and several others, help ACCO earn a Value grade of A, while SN has been given a Value grade of D.
ACCO 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 ACCO is likely the superior value option right now.
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Acco Brands Corporation (ACCO): Free Stock Analysis Report
SharkNinja, Inc. (SN): Free Stock Analysis Report