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TPR vs. GOOS: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Tapestry has 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 only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TPR currently has a forward P/E ratio of 8.86, while GOOS has a forward P/E of 50.36. We also note that TPR has a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GOOS currently has a PEG ratio of 4.80.
Another notable valuation metric for TPR is its P/B ratio of 1.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GOOS has a P/B of 7.50.
Based on these metrics and many more, TPR holds a Value grade of B, while GOOS has a Value grade of D.
TPR has seen stronger estimate revision activity and sports more attractive valuation metrics than GOOS, so it seems like value investors will conclude that TPR is the superior option right now.
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TPR vs. GOOS: Which Stock Should Value Investors Buy Now?
Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Tapestry has 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 only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TPR currently has a forward P/E ratio of 8.86, while GOOS has a forward P/E of 50.36. We also note that TPR has a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GOOS currently has a PEG ratio of 4.80.
Another notable valuation metric for TPR is its P/B ratio of 1.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GOOS has a P/B of 7.50.
Based on these metrics and many more, TPR holds a Value grade of B, while GOOS has a Value grade of D.
TPR has seen stronger estimate revision activity and sports more attractive valuation metrics than GOOS, so it seems like value investors will conclude that TPR is the superior option right now.