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HBI vs. LULU: Which Stock Should Value Investors Buy Now?
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Investors interested in Textile - Apparel stocks are likely familiar with HanesBrands (HBI - Free Report) and Lululemon (LULU - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both HanesBrands and Lululemon are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HBI currently has a forward P/E ratio of 12.56, while LULU has a forward P/E of 57.84. We also note that HBI has a PEG ratio of 1.48. 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. LULU currently has a PEG ratio of 3.16.
Another notable valuation metric for HBI is its P/B ratio of 12.32. 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, LULU has a P/B of 20.14.
These are just a few of the metrics contributing to HBI's Value grade of B and LULU's Value grade of F.
Both HBI and LULU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HBI is the superior value option right now.
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HBI vs. LULU: Which Stock Should Value Investors Buy Now?
Investors interested in Textile - Apparel stocks are likely familiar with HanesBrands (HBI - Free Report) and Lululemon (LULU - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both HanesBrands and Lululemon are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HBI currently has a forward P/E ratio of 12.56, while LULU has a forward P/E of 57.84. We also note that HBI has a PEG ratio of 1.48. 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. LULU currently has a PEG ratio of 3.16.
Another notable valuation metric for HBI is its P/B ratio of 12.32. 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, LULU has a P/B of 20.14.
These are just a few of the metrics contributing to HBI's Value grade of B and LULU's Value grade of F.
Both HBI and LULU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HBI is the superior value option right now.