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CRI or NKE: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Carter's (CRI - Free Report) or Nike (NKE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Carter's and Nike 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 NKE 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.
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.
CRI currently has a forward P/E ratio of 9.99, while NKE has a forward P/E of 35.94. We also note that CRI has a PEG ratio of 0.96. 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. NKE currently has a PEG ratio of 2.57.
Another notable valuation metric for CRI is its P/B ratio of 3.97. 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, NKE has a P/B of 14.26.
Based on these metrics and many more, CRI holds a Value grade of A, while NKE has a Value grade of D.
CRI stands above NKE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CRI is the superior value option right now.
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CRI or NKE: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Carter's (CRI - Free Report) or Nike (NKE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Carter's and Nike 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 NKE 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.
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.
CRI currently has a forward P/E ratio of 9.99, while NKE has a forward P/E of 35.94. We also note that CRI has a PEG ratio of 0.96. 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. NKE currently has a PEG ratio of 2.57.
Another notable valuation metric for CRI is its P/B ratio of 3.97. 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, NKE has a P/B of 14.26.
Based on these metrics and many more, CRI holds a Value grade of A, while NKE has a Value grade of D.
CRI stands above NKE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CRI is the superior value option right now.