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KTB or LULU: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Textile - Apparel sector might want to consider either Kontoor Brands (KTB - Free Report) or Lululemon (LULU - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Kontoor Brands has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that KTB likely has seen a stronger improvement to its earnings outlook than LULU has recently. But this is just one factor that value investors are interested in.
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.
KTB currently has a forward P/E ratio of 8.71, while LULU has a forward P/E of 32.73. We also note that KTB has a PEG ratio of 1.09. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LULU currently has a PEG ratio of 1.64.
Another notable valuation metric for KTB is its P/B ratio of 12.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LULU has a P/B of 14.33.
These are just a few of the metrics contributing to KTB's Value grade of A and LULU's Value grade of D.
KTB 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 KTB is likely the superior value option right now.
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KTB or LULU: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Textile - Apparel sector might want to consider either Kontoor Brands (KTB - Free Report) or Lululemon (LULU - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Kontoor Brands has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that KTB likely has seen a stronger improvement to its earnings outlook than LULU has recently. But this is just one factor that value investors are interested in.
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.
KTB currently has a forward P/E ratio of 8.71, while LULU has a forward P/E of 32.73. We also note that KTB has a PEG ratio of 1.09. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LULU currently has a PEG ratio of 1.64.
Another notable valuation metric for KTB is its P/B ratio of 12.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LULU has a P/B of 14.33.
These are just a few of the metrics contributing to KTB's Value grade of A and LULU's Value grade of D.
KTB 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 KTB is likely the superior value option right now.