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FL or GOOS: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Foot Locker (FL - Free Report) and Canada Goose (GOOS - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Foot Locker has a Zacks Rank of #1 (Strong Buy), while Canada Goose has a Zacks Rank of #4 (Sell) right now. This means that FL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
FL currently has a forward P/E ratio of 18.67, while GOOS has a forward P/E of 66.71. We also note that FL has a PEG ratio of 7.24. 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 7.85.
Another notable valuation metric for FL is its P/B ratio of 1.85. 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, GOOS has a P/B of 10.34.
These are just a few of the metrics contributing to FL's Value grade of A and GOOS's Value grade of D.
FL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FL is likely the superior value option right now.
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FL or GOOS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Foot Locker (FL - Free Report) and Canada Goose (GOOS - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Foot Locker has a Zacks Rank of #1 (Strong Buy), while Canada Goose has a Zacks Rank of #4 (Sell) right now. This means that FL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
FL currently has a forward P/E ratio of 18.67, while GOOS has a forward P/E of 66.71. We also note that FL has a PEG ratio of 7.24. 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 7.85.
Another notable valuation metric for FL is its P/B ratio of 1.85. 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, GOOS has a P/B of 10.34.
These are just a few of the metrics contributing to FL's Value grade of A and GOOS's Value grade of D.
FL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FL is likely the superior value option right now.