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IDEXY vs. DECK: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Industria de Diseno Textil SA (IDEXY - Free Report) and Deckers (DECK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Industria de Diseno Textil SA and Deckers are holding a Zacks Rank of # 2 (Buy). 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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

IDEXY currently has a forward P/E ratio of 23.20, while DECK has a forward P/E of 29.25. We also note that IDEXY has a PEG ratio of 1.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DECK currently has a PEG ratio of 1.63.

Another notable valuation metric for IDEXY is its P/B ratio of 7.44. 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. For comparison, DECK has a P/B of 9.82.

These are just a few of the metrics contributing to IDEXY's Value grade of B and DECK's Value grade of C.

Both IDEXY and DECK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IDEXY is the superior value option right now.


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