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CPRI or FIGS: Which Is the Better Value Stock Right Now?

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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Capri Holdings (CPRI - Free Report) and Figs (FIGS - 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, Capri Holdings has a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CPRI likely has seen a stronger improvement to its earnings outlook than FIGS has recently. But this is just one piece of the puzzle 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.

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.

CPRI currently has a forward P/E ratio of 11.43, while FIGS has a forward P/E of 2,525. We also note that CPRI has a PEG ratio of 0.36. 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. FIGS currently has a PEG ratio of 781.73.

Another notable valuation metric for CPRI is its P/B ratio of 3.53. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FIGS has a P/B of 18.82.

Based on these metrics and many more, CPRI holds a Value grade of B, while FIGS has a Value grade of F.

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


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