Core Viewpoint - Investors in the Consumer Products - Staples sector should consider Grocery Outlet Holding Corp. (GO) and Kimberly-Clark (KMB) for potential value investment opportunities [1] Group 1: Company Rankings and Performance - Grocery Outlet Holding Corp. has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Kimberly-Clark has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that GO is likely experiencing a more favorable earnings outlook compared to KMB [3] Group 2: Valuation Metrics - GO has a forward P/E ratio of 17.91, while KMB has a forward P/E of 18.58, indicating that GO may be more attractively priced relative to its earnings [5] - The PEG ratio for GO is 3.35, compared to KMB's PEG ratio of 4.47, suggesting that GO's valuation is more favorable when considering expected earnings growth [5] - GO's P/B ratio is 1.1, significantly lower than KMB's P/B of 35.69, further supporting GO's position as a better value option [6] - Based on these valuation metrics, GO has a Value grade of A, while KMB has a Value grade of C, reinforcing the conclusion that GO is the superior value investment at this time [6]
GO vs. KMB: Which Stock Should Value Investors Buy Now?