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Are Investors Undervaluing Capri Holdings (CPRI) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Capri Holdings (CPRI - Free Report) . CPRI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.71 right now. For comparison, its industry sports an average P/E of 13.08. Over the past 52 weeks, CPRI's Forward P/E has been as high as 14.81 and as low as 7.10, with a median of 9.59.
Investors should also note that CPRI holds a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CPRI's industry has an average PEG of 1.27 right now. Over the past 52 weeks, CPRI's PEG has been as high as 2.20 and as low as 1.14, with a median of 1.48.
Another valuation metric that we should highlight is CPRI's P/B ratio of 2.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CPRI's current P/B looks attractive when compared to its industry's average P/B of 3.07. CPRI's P/B has been as high as 5.54 and as low as 2.46, with a median of 3.23, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Capri Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, CPRI sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Capri Holdings (CPRI) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Capri Holdings (CPRI - Free Report) . CPRI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.71 right now. For comparison, its industry sports an average P/E of 13.08. Over the past 52 weeks, CPRI's Forward P/E has been as high as 14.81 and as low as 7.10, with a median of 9.59.
Investors should also note that CPRI holds a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CPRI's industry has an average PEG of 1.27 right now. Over the past 52 weeks, CPRI's PEG has been as high as 2.20 and as low as 1.14, with a median of 1.48.
Another valuation metric that we should highlight is CPRI's P/B ratio of 2.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CPRI's current P/B looks attractive when compared to its industry's average P/B of 3.07. CPRI's P/B has been as high as 5.54 and as low as 2.46, with a median of 3.23, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Capri Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, CPRI sticks out at as one of the market's strongest value stocks.