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JILL vs. GOOS: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of J.Jill (JILL - Free Report) and Canada Goose (GOOS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

J.Jill and Canada Goose are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

JILL currently has a forward P/E ratio of 10.97, while GOOS has a forward P/E of 74.69. We also note that JILL has a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GOOS currently has a PEG ratio of 2.98.

Another notable valuation metric for JILL is its P/B ratio of 1.93. 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, GOOS has a P/B of 34.25.

These are just a few of the metrics contributing to JILL's Value grade of A and GOOS's Value grade of F.

Both JILL and GOOS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JILL is the superior value option right now.


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J.Jill, Inc. (JILL) - free report >>

Canada Goose Holdings Inc. (GOOS) - free report >>