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Gildan Activewear, Inc. (GIL) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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Gildan Activewear, Inc. (GIL) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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GIL vs. LVMUY: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Textile - Apparel sector might want to consider either Gildan Activewear (GIL - Free Report) or LVMHMoet Hennessy Louis Vuitton SA (LVMUY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Gildan Activewear has a Zacks Rank of #2 (Buy), while LVMHMoet Hennessy Louis Vuitton SA has a Zacks Rank of #3 (Hold). This means that GIL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
GIL currently has a forward P/E ratio of 13, while LVMUY has a forward P/E of 22.95. We also note that GIL has a PEG ratio of 1.63. 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. LVMUY currently has a PEG ratio of 1.77.
Another notable valuation metric for GIL is its P/B ratio of 3.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LVMUY has a P/B of 6.04.
These metrics, and several others, help GIL earn a Value grade of B, while LVMUY has been given a Value grade of C.
GIL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GIL is likely the superior value option right now.