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HAYW or GRMN: Which Is the Better Value Stock Right Now?

HAYWGRMN
Company FundamentalsAnalyst EstimatesCorporate EarningsAnalyst Insights
HAYW or GRMN: Which Is the Better Value Stock Right Now?

A comparative analysis of Hayward Holdings (HAYW) and Garmin (GRMN) identifies HAYW as the preferred value stock, supported by its Zacks Rank #2 (Buy) indicating a stronger earnings outlook compared to GRMN's #3 (Hold). HAYW also presents more attractive valuation metrics, including a lower forward P/E of 22.10 versus GRMN's 29.69, a PEG ratio of 2.32 against GRMN's 2.66, and a P/B ratio of 2.34 compared to GRMN's 5.67, culminating in a superior Zacks Value grade of B.

Analysis

Based on a comparative analysis using the Zacks framework, Hayward Holdings (HAYW) presents a more compelling case for value-oriented investors than Garmin (GRMN). This conclusion is supported by HAYW's superior Zacks Rank of #2 (Buy), which indicates a stronger positive trend in earnings estimate revisions compared to GRMN's #3 (Hold) rank. Furthermore, HAYW demonstrates more attractive valuation across several key metrics. It trades at a forward P/E ratio of 22.10, notably lower than GRMN's 29.69. This valuation advantage extends to its price-to-earnings-growth (PEG) ratio of 2.32 versus GRMN's 2.66 and a significantly lower price-to-book (P/B) ratio of 2.34 compared to GRMN's 5.67. These quantitative factors culminate in a Zacks Value grade of 'B' for HAYW, while GRMN receives a 'D', reinforcing the assessment that Hayward Holdings currently offers a better entry point from a value perspective.

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Market Sentiment

Overall Sentiment

moderately positive

Sentiment Score

0.45

Ticker Sentiment

GRMN-0.45
HAYW0.75

Key Decisions for Investors

  • Value-focused investors may find Hayward Holdings (HAYW) to be the more attractive opportunity due to its stronger earnings outlook and more favorable valuation metrics relative to its peer.
  • Investors holding or considering Garmin (GRMN) should be aware of its premium valuation, evidenced by higher P/E, PEG, and P/B ratios, and its neutral earnings momentum as indicated by its 'Hold' rank.
  • Portfolio managers should monitor future earnings estimate revisions for both companies, as this is the primary driver of the Zacks Rank and a key indicator that could alter this comparative value assessment.