TPX vs. HD: Which Stock Is the Better Value Option?

Core Viewpoint - Tempur Sealy (TPX) and Home Depot (HD) are both strong contenders in the Retail - Home Furnishings sector, but TPX is currently viewed as the better value option based on various valuation metrics [1][6]. Valuation Metrics - Both TPX and HD have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - TPX has a forward P/E ratio of 20.73, while HD has a higher forward P/E of 27.08, suggesting TPX may be undervalued relative to HD [5]. - The PEG ratio for TPX is 1.91, indicating a more favorable valuation when considering expected earnings growth, compared to HD's PEG ratio of 4.31 [5]. - TPX's P/B ratio stands at 18.32, significantly lower than HD's P/B ratio of 70.28, further supporting TPX's position as a better value stock [6]. - Based on these metrics, TPX holds a Value grade of B, while HD has a Value grade of C, reinforcing the conclusion that TPX is the superior value option at this time [6].