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Should Value Investors Buy Canada Goose (GOOS) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Canada Goose (GOOS - Free Report) . GOOS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.29, while its industry has an average P/E of 15.34. GOOS's Forward P/E has been as high as 18.80 and as low as 8.83, with a median of 14.53, all within the past year.
Another valuation metric that we should highlight is GOOS's P/B ratio of 3.85. 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. This stock's P/B looks attractive against its industry's average P/B of 4.49. Over the past 12 months, GOOS's P/B has been as high as 6.54 and as low as 3.33, with a median of 4.29.
Finally, our model also underscores that GOOS has a P/CF ratio of 9.19. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.73. GOOS's P/CF has been as high as 14.99 and as low as 7.92, with a median of 9.68, all within the past year.
Investors could also keep in mind The Gap (GPS - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
The Gap is currently trading with a Forward P/E ratio of 12.95 while its PEG ratio sits at 3.83. Both of the company's metrics compare favorably to its industry's average P/E of 15.34 and average PEG ratio of 1.40.
GPS's price-to-earnings ratio has been as high as 22.71 and as low as 12.35, with a median of 15.85, while its PEG ratio has been as high as 4.60 and as low as 1.03, with a median of 1.38, all within the past year.
Furthermore, The Gap holds a P/B ratio of 3.22 and its industry's price-to-book ratio is 4.49. GPS's P/B has been as high as 4.07, as low as 1.48, with a median of 2.86 over the past 12 months.
These are only a few of the key metrics included in Canada Goose and The Gap strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GOOS and GPS look like an impressive value stock at the moment.
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Should Value Investors Buy Canada Goose (GOOS) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Canada Goose (GOOS - Free Report) . GOOS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.29, while its industry has an average P/E of 15.34. GOOS's Forward P/E has been as high as 18.80 and as low as 8.83, with a median of 14.53, all within the past year.
Another valuation metric that we should highlight is GOOS's P/B ratio of 3.85. 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. This stock's P/B looks attractive against its industry's average P/B of 4.49. Over the past 12 months, GOOS's P/B has been as high as 6.54 and as low as 3.33, with a median of 4.29.
Finally, our model also underscores that GOOS has a P/CF ratio of 9.19. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.73. GOOS's P/CF has been as high as 14.99 and as low as 7.92, with a median of 9.68, all within the past year.
Investors could also keep in mind The Gap (GPS - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
The Gap is currently trading with a Forward P/E ratio of 12.95 while its PEG ratio sits at 3.83. Both of the company's metrics compare favorably to its industry's average P/E of 15.34 and average PEG ratio of 1.40.
GPS's price-to-earnings ratio has been as high as 22.71 and as low as 12.35, with a median of 15.85, while its PEG ratio has been as high as 4.60 and as low as 1.03, with a median of 1.38, all within the past year.
Furthermore, The Gap holds a P/B ratio of 3.22 and its industry's price-to-book ratio is 4.49. GPS's P/B has been as high as 4.07, as low as 1.48, with a median of 2.86 over the past 12 months.
These are only a few of the key metrics included in Canada Goose and The Gap strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GOOS and GPS look like an impressive value stock at the moment.