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SKX or NKE: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Skechers (SKX - Free Report) and Nike (NKE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Skechers has a Zacks Rank of #2 (Buy), while Nike has a Zacks Rank of #3 (Hold). This means that SKX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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.
SKX currently has a forward P/E ratio of 15.31, while NKE has a forward P/E of 28.24. We also note that SKX has a PEG ratio of 0.56. 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. NKE currently has a PEG ratio of 1.87.
Another notable valuation metric for SKX is its P/B ratio of 2.19. 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, NKE has a P/B of 10.84.
These are just a few of the metrics contributing to SKX's Value grade of B and NKE's Value grade of D.
SKX has seen stronger estimate revision activity and sports more attractive valuation metrics than NKE, so it seems like value investors will conclude that SKX is the superior option right now.
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SKX or NKE: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Skechers (SKX - Free Report) and Nike (NKE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Skechers has a Zacks Rank of #2 (Buy), while Nike has a Zacks Rank of #3 (Hold). This means that SKX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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.
SKX currently has a forward P/E ratio of 15.31, while NKE has a forward P/E of 28.24. We also note that SKX has a PEG ratio of 0.56. 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. NKE currently has a PEG ratio of 1.87.
Another notable valuation metric for SKX is its P/B ratio of 2.19. 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, NKE has a P/B of 10.84.
These are just a few of the metrics contributing to SKX's Value grade of B and NKE's Value grade of D.
SKX has seen stronger estimate revision activity and sports more attractive valuation metrics than NKE, so it seems like value investors will conclude that SKX is the superior option right now.