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TPR vs. GOOS: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Tapestry (TPR - Free Report) and Canada Goose (GOOS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Tapestry is sporting a Zacks Rank of #2 (Buy), while Canada Goose has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that TPR likely has seen a stronger improvement to its earnings outlook than GOOS has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TPR currently has a forward P/E ratio of 8.91, while GOOS has a forward P/E of 38.18. We also note that TPR has a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GOOS currently has a PEG ratio of 2.73.
Another notable valuation metric for TPR is its P/B ratio of 1.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GOOS has a P/B of 6.55.
These metrics, and several others, help TPR earn a Value grade of A, while GOOS has been given a Value grade of D.
TPR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TPR is likely the superior value option right now.
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TPR vs. GOOS: Which Stock Is the Better Value Option?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Tapestry (TPR - Free Report) and Canada Goose (GOOS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Tapestry is sporting a Zacks Rank of #2 (Buy), while Canada Goose has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that TPR likely has seen a stronger improvement to its earnings outlook than GOOS has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TPR currently has a forward P/E ratio of 8.91, while GOOS has a forward P/E of 38.18. We also note that TPR has a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GOOS currently has a PEG ratio of 2.73.
Another notable valuation metric for TPR is its P/B ratio of 1.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GOOS has a P/B of 6.55.
These metrics, and several others, help TPR earn a Value grade of A, while GOOS has been given a Value grade of D.
TPR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TPR is likely the superior value option right now.