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SIG or CFRUY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Retail - Jewelry sector might want to consider either Signet (SIG - Free Report) or Compagnie Financiere Richemont AG (CFRUY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, Signet is sporting a Zacks Rank of #1 (Strong Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIG 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.
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.
SIG currently has a forward P/E ratio of 5.81, while CFRUY has a forward P/E of 18.14. We also note that SIG has a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CFRUY currently has a PEG ratio of 1.05.
Another notable valuation metric for SIG is its P/B ratio of 2.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CFRUY has a P/B of 4.68.
These are just a few of the metrics contributing to SIG's Value grade of A and CFRUY's Value grade of D.
SIG has seen stronger estimate revision activity and sports more attractive valuation metrics than CFRUY, so it seems like value investors will conclude that SIG is the superior option right now.
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SIG or CFRUY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Retail - Jewelry sector might want to consider either Signet (SIG - Free Report) or Compagnie Financiere Richemont AG (CFRUY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, Signet is sporting a Zacks Rank of #1 (Strong Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIG 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.
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.
SIG currently has a forward P/E ratio of 5.81, while CFRUY has a forward P/E of 18.14. We also note that SIG has a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CFRUY currently has a PEG ratio of 1.05.
Another notable valuation metric for SIG is its P/B ratio of 2.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CFRUY has a P/B of 4.68.
These are just a few of the metrics contributing to SIG's Value grade of A and CFRUY's Value grade of D.
SIG has seen stronger estimate revision activity and sports more attractive valuation metrics than CFRUY, so it seems like value investors will conclude that SIG is the superior option right now.