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Is Capri Holdings (CPRI) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Capri Holdings (CPRI - Free Report) . CPRI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.16, which compares to its industry's average of 9.50. Over the past 52 weeks, CPRI's Forward P/E has been as high as 13.89 and as low as 5.57, with a median of 10.33.

Investors should also note that CPRI holds a PEG ratio of 0.55. 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. CPRI's industry currently sports an average PEG of 0.76. Over the last 12 months, CPRI's PEG has been as high as 0.73 and as low as 0.10, with a median of 0.31.

We should also highlight that CPRI has a P/B ratio of 2.40. 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. CPRI's current P/B looks attractive when compared to its industry's average P/B of 2.55. Within the past 52 weeks, CPRI's P/B has been as high as 3.86 and as low as 2.15, with a median of 3.11.

J.Jill (JILL - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. JILL is a # 1 (Strong Buy) stock with a Value grade of A.

J.Jill sports a P/B ratio of -5.64 as well; this compares to its industry's price-to-book ratio of 2.55. In the past 52 weeks, JILL's P/B has been as high as -1.66, as low as -6.39, with a median of -3.42.

Value investors will likely look at more than just these metrics, but the above data helps show that Capri Holdings and J.Jill are likely undervalued currently. And when considering the strength of its earnings outlook, CPRI and JILL sticks out as one of the market's strongest value stocks.


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