Value And Growth Managers Agree – These Two Stocks Are Worth Buying Now

Both of these stocks have terrific growth but also low price-to-earnings (p/e) ratios and high return on equity. I’m sure you realize how rare that combination is in an expensive market like this one.

So here they are.

Academy Sports Outdoors: ASO – $37.06

Academy Sports and Outdoors Inc. is full-line sporting goods and outdoor recreation retailer. The Company operates over 259 stores across 16 contiguous states, primarily in the southern United States.

Its offered broad assortment appeals to all ages, incomes, and aspirations, including beginning and advanced athletes.

The Company sells a range of sporting and outdoor recreation products, such as fitness equipment and apparel, work and casual wear, folding chairs, wagons and tents, training and running shoes, and coolers.


What do Investors see in Academy Sports?

The reason I know growth investors are attracted to Academy is that it came upon a filter I ran of Investors Business Daily legend David Ryan profiled in the legendary book, Market Wizards.

Growth investors See a stock with a 97 Relative Strength rating, is a recent hot IPO and offers tremendous growth of ~85%.

Value Managers see a company with below-market multiple p/e: (9) and incredibly strong margins (return on equity) of 37%

Dicks Sporting Goods: DKS: $97.34

Dick’s Sporting Goods, Inc. is an omnichannel sporting goods retailer. The Company’s offering includes sports equipment, apparel, footwear and accessories through dedicated teammates, in-store services, and specialty shop-in-shops. The Company also owns and operates Golf Galaxy and Field & Stream specialty stores, as well as GameChanger, a youth sports mobile application for scheduling youth sports.

Growth managers see a big growth story in Dicks. Just look at the growth in cash flows.

Value Managers see the combination of a below-average p/e (9) and a strong return on equity of 27%


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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