In This Article:
Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Camping World (CWH) or Airbnb, Inc. (ABNB). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Camping World and Airbnb, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CWH'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 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.
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.
CWH currently has a forward P/E ratio of 22.92, while ABNB has a forward P/E of 37.76. We also note that CWH has a PEG ratio of 0.77. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABNB currently has a PEG ratio of 2.38.
Another notable valuation metric for CWH is its P/B ratio of 11.21. 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, ABNB has a P/B of 12.16.
Based on these metrics and many more, CWH holds a Value grade of A, while ABNB has a Value grade of D.
CWH stands above ABNB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CWH is the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Camping World (CWH) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report