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HIBB vs. GOOS: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Hibbett 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Hibbett has a Zacks Rank of #2 (Buy), while Canada Goose has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that HIBB 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

HIBB currently has a forward P/E ratio of 6.39, while GOOS has a forward P/E of 41.73. We also note that HIBB has a PEG ratio of 0.28. 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 1.55.

Another notable valuation metric for HIBB is its P/B ratio of 2.89. 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 8.99.

Based on these metrics and many more, HIBB holds a Value grade of A, while GOOS has a Value grade of C.

HIBB sticks out from GOOS in both our Zacks Rank and Style Scores models, so value investors will likely feel that HIBB is the better option right now.


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