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PVH vs. KTB: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Textile - Apparel sector might want to consider either PVH (PVH - Free Report) or Kontoor Brands (KTB - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, PVH has a Zacks Rank of #2 (Buy), while Kontoor Brands 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 PVH is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PVH currently has a forward P/E ratio of 8.95, while KTB has a forward P/E of 14.47. We also note that PVH has a PEG ratio of 0.78. 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. KTB currently has a PEG ratio of 1.81.
Another notable valuation metric for PVH is its P/B ratio of 1.13. 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, KTB has a P/B of 9.87.
These are just a few of the metrics contributing to PVH's Value grade of A and KTB's Value grade of C.
PVH stands above KTB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PVH is the superior value option right now.
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PVH vs. KTB: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Textile - Apparel sector might want to consider either PVH (PVH - Free Report) or Kontoor Brands (KTB - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, PVH has a Zacks Rank of #2 (Buy), while Kontoor Brands 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 PVH is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PVH currently has a forward P/E ratio of 8.95, while KTB has a forward P/E of 14.47. We also note that PVH has a PEG ratio of 0.78. 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. KTB currently has a PEG ratio of 1.81.
Another notable valuation metric for PVH is its P/B ratio of 1.13. 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, KTB has a P/B of 9.87.
These are just a few of the metrics contributing to PVH's Value grade of A and KTB's Value grade of C.
PVH stands above KTB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PVH is the superior value option right now.