HAYW vs. GRMN: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Hayward Holdings, Inc. (HAYW) is currently positioned as a more attractive investment opportunity compared to Garmin (GRMN) based on valuation metrics and earnings outlook [1]. Group 1: Zacks Rank and Earnings Outlook - HAYW has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while GRMN has a Zacks Rank of 3 (Hold) [3]. - The positive earnings outlook for HAYW suggests a stronger potential for earnings improvement compared to GRMN [3]. Group 2: Valuation Metrics - HAYW has a forward P/E ratio of 22.30, significantly lower than GRMN's forward P/E of 30.21, indicating that HAYW may be undervalued [5]. - The PEG ratio for HAYW is 2.16, while GRMN's PEG ratio is higher at 3.16, suggesting HAYW offers better value relative to its expected earnings growth [5]. - HAYW's P/B ratio stands at 2.17, compared to GRMN's P/B of 5.01, further supporting the notion that HAYW is undervalued [6]. Group 3: Value Grades - HAYW holds a Value grade of B, while GRMN has a Value grade of D, indicating that HAYW is viewed more favorably in terms of value investment criteria [6]. - The combination of Zacks Rank and Style Scores indicates that HAYW is the better option for value investors at this time [6].