TPX or HD: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Retail - Home Furnishings sector should consider Tempur Sealy (TPX) and Home Depot (HD) for potential value opportunities [1] Valuation Metrics - Both TPX and HD currently have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - TPX has a forward P/E ratio of 21.90, while HD has a forward P/E of 27.25, suggesting TPX may be undervalued compared to HD [5] - TPX's PEG ratio is 2.02, compared to HD's PEG ratio of 4.34, indicating TPX has a more favorable growth outlook relative to its valuation [5] - TPX has a P/B ratio of 19.42, significantly lower than HD's P/B of 70.73, further supporting TPX as the superior value option [6] - Based on these valuation metrics, TPX holds a Value grade of B, while HD has a Value grade of C, reinforcing TPX's position as the better value investment [6]