Value and Growth Managers Agree - These two stocks are worth buying Now

Value and Growth Managers Agree – These two stocks are worth buying Now

How often do Value Managers and Growth Investors agree on a stock? Almost Never.

Which is why I was surprised when I realized a couple of value stocks that hit my radar were also being purchased by Growth managers.

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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 a full-line sporting goods and outdoor recreation retailers. 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 sell 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 because it came up on 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 omni-channel sporting goods retailer. The Company’s offering includes sports equipment, apparel, footwear and accessories through a 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%