Group 1 - Grocery Outlet Holding Corp. (GO) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Kimberly-Clark (KMB) has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system favors stocks with strong earnings estimate revisions, which is a key consideration for value investors [2][3] - Value investors analyze various traditional metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - GO has a forward P/E ratio of 17.47, while KMB has a forward P/E of 18.20, suggesting GO may be more attractively priced [5] - The PEG ratio for GO is 3.53, compared to KMB's PEG ratio of 4.37, indicating GO has a better earnings growth outlook relative to its valuation [5] - GO's P/B ratio is 1.07, significantly lower than KMB's P/B of 34.95, further supporting GO as the superior value option [6]
GO or KMB: Which Is the Better Value Stock Right Now?