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FL or JWN: Which Is the Better Value Stock Right Now?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Foot Locker (FL - Free Report) and Nordstrom (JWN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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.

Right now, Foot Locker is sporting a Zacks Rank of #1 (Strong Buy), while Nordstrom 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 FL has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

FL currently has a forward P/E ratio of 11.07, while JWN has a forward P/E of 30.93. We also note that FL has a PEG ratio of 2.77. 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. JWN currently has a PEG ratio of 5.16.

Another notable valuation metric for FL is its P/B ratio of 2.20. 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, JWN has a P/B of 34.94.

These are just a few of the metrics contributing to FL's Value grade of B and JWN's Value grade of D.

FL stands above JWN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FL is the superior value option right now.


In-Depth Zacks Research for the Tickers Above


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Foot Locker, Inc. (FL) - free report >>

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