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ZGN 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 Ermenegildo Zegna N.V. (ZGN - Free Report) and Deckers (DECK - 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.
Currently, Ermenegildo Zegna N.V. has a Zacks Rank of #2 (Buy), while Deckers has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ZGN is likely seeing its earnings outlook improve to a greater extent. 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.
ZGN currently has a forward P/E ratio of 24.37, while DECK has a forward P/E of 35.57. We also note that ZGN has a PEG ratio of 2.18. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DECK currently has a PEG ratio of 3.64.
Another notable valuation metric for ZGN is its P/B ratio of 5.17. 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 13.14.
Based on these metrics and many more, ZGN holds a Value grade of B, while DECK has a Value grade of C.
ZGN stands above DECK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZGN is the superior value option right now.
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ZGN vs. DECK: Which Stock Is the Better Value Option?
Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Ermenegildo Zegna N.V. (ZGN - Free Report) and Deckers (DECK - 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.
Currently, Ermenegildo Zegna N.V. has a Zacks Rank of #2 (Buy), while Deckers has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ZGN is likely seeing its earnings outlook improve to a greater extent. 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.
ZGN currently has a forward P/E ratio of 24.37, while DECK has a forward P/E of 35.57. We also note that ZGN has a PEG ratio of 2.18. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DECK currently has a PEG ratio of 3.64.
Another notable valuation metric for ZGN is its P/B ratio of 5.17. 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 13.14.
Based on these metrics and many more, ZGN holds a Value grade of B, while DECK has a Value grade of C.
ZGN stands above DECK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZGN is the superior value option right now.