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CROX vs. LULU: Which Stock Is the Better Value Option?
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Investors interested in Textile - Apparel stocks are likely familiar with Crocs (CROX - Free Report) and Lululemon (LULU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Crocs and Lululemon are both sporting a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
CROX currently has a forward P/E ratio of 7.72, while LULU has a forward P/E of 29.22. We also note that CROX has a PEG ratio of 0.51. 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. LULU currently has a PEG ratio of 1.46.
Another notable valuation metric for CROX is its P/B ratio of 9.71. 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, LULU has a P/B of 12.88.
These metrics, and several others, help CROX earn a Value grade of B, while LULU has been given a Value grade of F.
Both CROX and LULU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CROX is the superior value option right now.
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CROX vs. LULU: Which Stock Is the Better Value Option?
Investors interested in Textile - Apparel stocks are likely familiar with Crocs (CROX - Free Report) and Lululemon (LULU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Crocs and Lululemon are both sporting a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
CROX currently has a forward P/E ratio of 7.72, while LULU has a forward P/E of 29.22. We also note that CROX has a PEG ratio of 0.51. 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. LULU currently has a PEG ratio of 1.46.
Another notable valuation metric for CROX is its P/B ratio of 9.71. 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, LULU has a P/B of 12.88.
These metrics, and several others, help CROX earn a Value grade of B, while LULU has been given a Value grade of F.
Both CROX and LULU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CROX is the superior value option right now.