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WWW or CRI: Which Is the Better Value Stock Right Now?

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Investors with an interest in Shoes and Retail Apparel stocks have likely encountered both Wolverine World Wide (WWW - Free Report) and Carter's (CRI - 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.

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.

Wolverine World Wide and Carter's 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 WWW has an improving earnings outlook. 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.

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.

WWW currently has a forward P/E ratio of 18.14, while CRI has a forward P/E of 26.27. We also note that WWW has a PEG ratio of 1.21. 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. CRI currently has a PEG ratio of 8.88.

Another notable valuation metric for WWW is its P/B ratio of 2.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CRI has a P/B of 5.15.

Based on these metrics and many more, WWW holds a Value grade of B, while CRI has a Value grade of F.

WWW sticks out from CRI in both our Zacks Rank and Style Scores models, so value investors will likely feel that WWW is the better option right now.


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Wolverine World Wide, Inc. (WWW) - free report >>

Carter's, Inc. (CRI) - free report >>

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