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PVH vs. GIL: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Textile - Apparel stocks have likely encountered both PVH (PVH - Free Report) and Gildan Activewear (GIL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
PVH and Gildan Activewear are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle 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.
PVH currently has a forward P/E ratio of 13.71, while GIL has a forward P/E of 19.49. We also note that PVH has a PEG ratio of 0.76. 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. GIL currently has a PEG ratio of 2.17.
Another notable valuation metric for PVH is its P/B ratio of 1.38. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GIL has a P/B of 3.61.
These are just a few of the metrics contributing to PVH's Value grade of B and GIL's Value grade of D.
Both PVH and GIL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PVH is the superior value option right now.
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PVH vs. GIL: Which Stock Should Value Investors Buy Now?
Investors with an interest in Textile - Apparel stocks have likely encountered both PVH (PVH - Free Report) and Gildan Activewear (GIL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
PVH and Gildan Activewear are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle 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.
PVH currently has a forward P/E ratio of 13.71, while GIL has a forward P/E of 19.49. We also note that PVH has a PEG ratio of 0.76. 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. GIL currently has a PEG ratio of 2.17.
Another notable valuation metric for PVH is its P/B ratio of 1.38. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GIL has a P/B of 3.61.
These are just a few of the metrics contributing to PVH's Value grade of B and GIL's Value grade of D.
Both PVH and GIL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PVH is the superior value option right now.