We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CRI vs. ADDYY: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Carter's (CRI - Free Report) or Adidas AG (ADDYY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Carter's and Adidas AG are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CRI likely has seen a stronger improvement to its earnings outlook than ADDYY has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 13.96, while ADDYY has a forward P/E of 40.93. We also note that CRI has a PEG ratio of 0.66. 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. ADDYY currently has a PEG ratio of 5.05.
Another notable valuation metric for CRI is its P/B ratio of 4.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ADDYY has a P/B of 8.14.
These metrics, and several others, help CRI earn a Value grade of A, while ADDYY has been given a Value grade of C.
CRI stands above ADDYY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CRI is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CRI vs. ADDYY: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Carter's (CRI - Free Report) or Adidas AG (ADDYY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Carter's and Adidas AG are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CRI likely has seen a stronger improvement to its earnings outlook than ADDYY has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 13.96, while ADDYY has a forward P/E of 40.93. We also note that CRI has a PEG ratio of 0.66. 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. ADDYY currently has a PEG ratio of 5.05.
Another notable valuation metric for CRI is its P/B ratio of 4.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ADDYY has a P/B of 8.14.
These metrics, and several others, help CRI earn a Value grade of A, while ADDYY has been given a Value grade of C.
CRI stands above ADDYY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CRI is the superior value option right now.