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JWN vs. FIGS: Which Stock Is the Better Value Option?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Nordstrom (JWN - Free Report) and Figs (FIGS - 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 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.
Nordstrom and Figs are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JWN is likely seeing its earnings outlook improve to a greater extent. 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.
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.
JWN currently has a forward P/E ratio of 6.97, while FIGS has a forward P/E of 61.83. We also note that JWN has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FIGS currently has a PEG ratio of 9.86.
Another notable valuation metric for JWN is its P/B ratio of 6.30. 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, FIGS has a P/B of 11.01.
These metrics, and several others, help JWN earn a Value grade of A, while FIGS has been given a Value grade of F.
JWN stands above FIGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JWN is the superior value option right now.
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JWN vs. FIGS: Which Stock Is the Better Value Option?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Nordstrom (JWN - Free Report) and Figs (FIGS - 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 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.
Nordstrom and Figs are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JWN is likely seeing its earnings outlook improve to a greater extent. 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.
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.
JWN currently has a forward P/E ratio of 6.97, while FIGS has a forward P/E of 61.83. We also note that JWN has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FIGS currently has a PEG ratio of 9.86.
Another notable valuation metric for JWN is its P/B ratio of 6.30. 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, FIGS has a P/B of 11.01.
These metrics, and several others, help JWN earn a Value grade of A, while FIGS has been given a Value grade of F.
JWN stands above FIGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JWN is the superior value option right now.