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CRI vs. DECK: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Carter's (CRI - Free Report) and Deckers (DECK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Carter's and Deckers have a Zacks Rank of # 2 (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 factor that value investors are interested in.
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.
CRI currently has a forward P/E ratio of 16.31, while DECK has a forward P/E of 25.81. We also note that CRI has a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DECK currently has a PEG ratio of 1.52.
Another notable valuation metric for CRI is its P/B ratio of 4.20. 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, DECK has a P/B of 7.53.
These metrics, and several others, help CRI earn a Value grade of B, while DECK has been given a Value grade of C.
Both CRI and DECK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CRI is the superior value option right now.
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CRI vs. DECK: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Carter's (CRI - Free Report) and Deckers (DECK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Carter's and Deckers have a Zacks Rank of # 2 (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 factor that value investors are interested in.
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.
CRI currently has a forward P/E ratio of 16.31, while DECK has a forward P/E of 25.81. We also note that CRI has a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DECK currently has a PEG ratio of 1.52.
Another notable valuation metric for CRI is its P/B ratio of 4.20. 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, DECK has a P/B of 7.53.
These metrics, and several others, help CRI earn a Value grade of B, while DECK has been given a Value grade of C.
Both CRI and DECK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CRI is the superior value option right now.