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GPS vs. IDEXY: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Gap and Industria de Diseno Textil SA (IDEXY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Gap and Industria de Diseno Textil SA are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GPS currently has a forward P/E ratio of 15.64, while IDEXY has a forward P/E of 20.84. We also note that GPS has a PEG ratio of 1.30. 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. IDEXY currently has a PEG ratio of 1.87.
Another notable valuation metric for GPS is its P/B ratio of 1.77. 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, IDEXY has a P/B of 6.77.
Based on these metrics and many more, GPS holds a Value grade of A, while IDEXY has a Value grade of D.
Both GPS and IDEXY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GPS is the superior value option right now.
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GPS vs. IDEXY: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Gap and Industria de Diseno Textil SA (IDEXY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Gap and Industria de Diseno Textil SA are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GPS currently has a forward P/E ratio of 15.64, while IDEXY has a forward P/E of 20.84. We also note that GPS has a PEG ratio of 1.30. 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. IDEXY currently has a PEG ratio of 1.87.
Another notable valuation metric for GPS is its P/B ratio of 1.77. 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, IDEXY has a P/B of 6.77.
Based on these metrics and many more, GPS holds a Value grade of A, while IDEXY has a Value grade of D.
Both GPS and IDEXY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GPS is the superior value option right now.