GIL or LVMUY: Which Is the Better Value Stock Right Now?

GIL LVMUY

Investors looking for stocks in the Textile - Apparel sector might want to consider either Gildan Activewear (GIL - Free Report) or LVMHMoet Hennessy Louis Vuitton SA (LVMUY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Gildan Activewear has a Zacks Rank of #2 (Buy), while LVMHMoet Hennessy Louis Vuitton SA 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 GIL has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

GIL currently has a forward P/E ratio of 9.70, while LVMUY has a forward P/E of 21.51. We also note that GIL has a PEG ratio of 1.08. 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. LVMUY currently has a PEG ratio of 1.38.

Another notable valuation metric for GIL is its P/B ratio of 2.96. 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, LVMUY has a P/B of 5.36.

These metrics, and several others, help GIL earn a Value grade of B, while LVMUY has been given a Value grade of D.

GIL has seen stronger estimate revision activity and sports more attractive valuation metrics than LVMUY, so it seems like value investors will conclude that GIL is the superior option right now.

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