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SIG or CFRUY: Which Is the Better Value Stock Right Now?

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Investors interested in Retail - Jewelry stocks are likely familiar with Signet (SIG - Free Report) and Compagnie Financiere Richemont AG (CFRUY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Signet and Compagnie Financiere Richemont AG are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SIG has an improving earnings outlook. But this is only part of the picture 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.

SIG currently has a forward P/E ratio of 6.03, while CFRUY has a forward P/E of 21.37. We also note that SIG has a PEG ratio of 0.75. 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 1.13.

Another notable valuation metric for SIG is its P/B ratio of 2.42. 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, CFRUY has a P/B of 6.50.

These are just a few of the metrics contributing to SIG's Value grade of B 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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