DG or TJX: Which Is the Better Value Stock Right Now?

Core Insights - The article compares Dollar General (DG) and TJX to determine which stock is more attractive to value investors [1] - It emphasizes the importance of a strong Zacks Rank combined with favorable Value category grades for identifying value stocks [2] Valuation Metrics - Dollar General has a Zacks Rank of 2 (Buy), indicating an improving earnings outlook, while TJX has a Zacks Rank of 3 (Hold) [3] - DG's forward P/E ratio is 13.16, significantly lower than TJX's forward P/E of 28.87, suggesting DG may be undervalued [5] - The PEG ratio for DG is 2.25, compared to TJX's PEG ratio of 3.03, indicating DG's expected earnings growth is more favorable relative to its valuation [5] - DG's P/B ratio is 2.34, while TJX's P/B ratio is 17.34, further highlighting DG's relative undervaluation [6] Overall Assessment - Based on various valuation metrics, DG holds a Value grade of A, whereas TJX has a Value grade of C, making DG a more attractive option for value investors [7]