FLXS vs. SN: Which Stock Should Value Investors Buy Now?
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Investors interested in Furniture stocks are likely familiar with Flexsteel Industries (FLXS) and 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, Flexsteel Industries is sporting a Zacks Rank of #1 (Strong Buy), while SharkNinja, Inc. has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that FLXS likely has seen a stronger improvement to its earnings outlook than SN has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
FLXS currently has a forward P/E ratio of 17.99, while SN has a forward P/E of 26.19. We also note that FLXS has a PEG ratio of 1.50. 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 1.77.
Another notable valuation metric for FLXS 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, SN has a P/B of 9.43.
These metrics, and several others, help FLXS earn a Value grade of B, while SN has been given a Value grade of D.
FLXS has seen stronger estimate revision activity and sports more attractive valuation metrics than SN, so it seems like value investors will conclude that FLXS is the superior option right now.
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Flexsteel Industries, Inc. (FLXS) : Free Stock Analysis Report
SharkNinja, Inc. (SN) : Free Stock Analysis Report