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GAP vs. CPRI: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Gap (GAP - Free Report) or Capri Holdings (CPRI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Gap and Capri Holdings are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GAP has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
GAP currently has a forward P/E ratio of 11.07, while CPRI has a forward P/E of 19.86. We also note that GAP has a PEG ratio of 1.18. 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. CPRI currently has a PEG ratio of 6.95.
Another notable valuation metric for GAP is its P/B ratio of 2.69. 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, CPRI has a P/B of 3.14.
Based on these metrics and many more, GAP holds a Value grade of A, while CPRI has a Value grade of C.
GAP sticks out from CPRI in both our Zacks Rank and Style Scores models, so value investors will likely feel that GAP is the better option right now.
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GAP vs. CPRI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Gap (GAP - Free Report) or Capri Holdings (CPRI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Gap and Capri Holdings are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GAP has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
GAP currently has a forward P/E ratio of 11.07, while CPRI has a forward P/E of 19.86. We also note that GAP has a PEG ratio of 1.18. 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. CPRI currently has a PEG ratio of 6.95.
Another notable valuation metric for GAP is its P/B ratio of 2.69. 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, CPRI has a P/B of 3.14.
Based on these metrics and many more, GAP holds a Value grade of A, while CPRI has a Value grade of C.
GAP sticks out from CPRI in both our Zacks Rank and Style Scores models, so value investors will likely feel that GAP is the better option right now.