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IDEXY or DECK: Which Is the Better Value Stock Right Now?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Industria de Diseno Textil SA (IDEXY - Free Report) and Deckers (DECK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify 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 just one factor that value investors are interested in.
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 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 22.38, while DECK has a forward P/E of 30.67. We also note that IDEXY has a PEG ratio of 1.50. 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. DECK currently has a PEG ratio of 1.71.
Another notable valuation metric for IDEXY is its P/B ratio of 7.41. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DECK has a P/B of 10.39.
Based on these metrics and many more, IDEXY holds a Value grade of B, while DECK has a 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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IDEXY or DECK: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Industria de Diseno Textil SA (IDEXY - Free Report) and Deckers (DECK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify 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 just one factor that value investors are interested in.
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 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 22.38, while DECK has a forward P/E of 30.67. We also note that IDEXY has a PEG ratio of 1.50. 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. DECK currently has a PEG ratio of 1.71.
Another notable valuation metric for IDEXY is its P/B ratio of 7.41. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DECK has a P/B of 10.39.
Based on these metrics and many more, IDEXY holds a Value grade of B, while DECK has a 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.