Investors interested in stocks from the Cosmetics sector have probably already heard of Nu Skin Enterprises (NUS - Free Report) and Inter Parfums (IPAR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Inter Parfums has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NUS likely has seen a stronger improvement to its earnings outlook than IPAR has recently. However, value investors will care about much more than just this.
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.
NUS currently has a forward P/E ratio of 9.91, while IPAR has a forward P/E of 34.92. We also note that NUS has a PEG ratio of 0.89. 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. IPAR currently has a PEG ratio of 2.85.
Another notable valuation metric for NUS is its P/B ratio of 2.66. 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, IPAR has a P/B of 3.47.
These metrics, and several others, help NUS earn a Value grade of A, while IPAR has been given a Value grade of D.
NUS stands above IPAR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NUS is the superior value option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Investors interested in stocks from the Cosmetics sector have probably already heard of Nu Skin Enterprises (NUS - Free Report) and Inter Parfums (IPAR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Inter Parfums has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NUS likely has seen a stronger improvement to its earnings outlook than IPAR has recently. However, value investors will care about much more than just this.
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.
NUS currently has a forward P/E ratio of 9.91, while IPAR has a forward P/E of 34.92. We also note that NUS has a PEG ratio of 0.89. 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. IPAR currently has a PEG ratio of 2.85.
Another notable valuation metric for NUS is its P/B ratio of 2.66. 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, IPAR has a P/B of 3.47.
These metrics, and several others, help NUS earn a Value grade of A, while IPAR has been given a Value grade of D.
NUS stands above IPAR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NUS is the superior value option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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