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WWW or NKE: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Wolverine World Wide (WWW - Free Report) or Nike (NKE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Wolverine World Wide is sporting a Zacks Rank of #2 (Buy), while Nike has a Zacks Rank of #3 (Hold). This means that WWW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WWW currently has a forward P/E ratio of 10.18, while NKE has a forward P/E of 37.97. We also note that WWW has a PEG ratio of 1.02. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NKE currently has a PEG ratio of 2.60.
Another notable valuation metric for WWW is its P/B ratio of 3.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NKE has a P/B of 14.85.
Based on these metrics and many more, WWW holds a Value grade of B, while NKE has a Value grade of D.
WWW 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 WWW is likely the superior value option right now.
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WWW or NKE: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Wolverine World Wide (WWW - Free Report) or Nike (NKE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Wolverine World Wide is sporting a Zacks Rank of #2 (Buy), while Nike has a Zacks Rank of #3 (Hold). This means that WWW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WWW currently has a forward P/E ratio of 10.18, while NKE has a forward P/E of 37.97. We also note that WWW has a PEG ratio of 1.02. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NKE currently has a PEG ratio of 2.60.
Another notable valuation metric for WWW is its P/B ratio of 3.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NKE has a P/B of 14.85.
Based on these metrics and many more, WWW holds a Value grade of B, while NKE has a Value grade of D.
WWW 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 WWW is likely the superior value option right now.