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AEO or FIGS: Which Is the Better Value Stock Right Now?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with American Eagle Outfitters (AEO - Free Report) and Figs (FIGS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Right now, American Eagle Outfitters is sporting a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AEO has an improving earnings outlook. But this is only part of the picture 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.
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.
AEO currently has a forward P/E ratio of 11.49, while FIGS has a forward P/E of 200.33. We also note that AEO has a PEG ratio of 0.97. 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. FIGS currently has a PEG ratio of 80.13.
Another notable valuation metric for AEO is its P/B ratio of 2.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FIGS has a P/B of 2.62.
These metrics, and several others, help AEO earn a Value grade of A, while FIGS has been given a Value grade of C.
AEO sticks out from FIGS in both our Zacks Rank and Style Scores models, so value investors will likely feel that AEO is the better option right now.
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AEO or FIGS: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with American Eagle Outfitters (AEO - Free Report) and Figs (FIGS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Right now, American Eagle Outfitters is sporting a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AEO has an improving earnings outlook. But this is only part of the picture 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.
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.
AEO currently has a forward P/E ratio of 11.49, while FIGS has a forward P/E of 200.33. We also note that AEO has a PEG ratio of 0.97. 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. FIGS currently has a PEG ratio of 80.13.
Another notable valuation metric for AEO is its P/B ratio of 2.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FIGS has a P/B of 2.62.
These metrics, and several others, help AEO earn a Value grade of A, while FIGS has been given a Value grade of C.
AEO sticks out from FIGS in both our Zacks Rank and Style Scores models, so value investors will likely feel that AEO is the better option right now.