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JWN vs. FIGS: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Nordstrom (JWN - Free Report) and Figs (FIGS - 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.

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.

Nordstrom and Figs are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JWN is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

JWN currently has a forward P/E ratio of 8.66, while FIGS has a forward P/E of 66.56. We also note that JWN has a PEG ratio of 1.44. 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 3.31.

Another notable valuation metric for JWN is its P/B ratio of 7.83. 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 12.29.

These are just a few of the metrics contributing to JWN's Value grade of A and FIGS's Value grade of F.

JWN sticks out from FIGS in both our Zacks Rank and Style Scores models, so value investors will likely feel that JWN is the better option right now.


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Nordstrom, Inc. (JWN) - free report >>

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