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COLM vs. LULU: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Textile - Apparel sector might want to consider either Columbia Sportswear (COLM - Free Report) or Lululemon (LULU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Columbia Sportswear has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that COLM is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
COLM currently has a forward P/E ratio of 12.41, while LULU has a forward P/E of 29.92. We also note that COLM has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LULU currently has a PEG ratio of 1.50.
Another notable valuation metric for COLM is its P/B ratio of 2.52. 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, LULU has a P/B of 13.54.
Based on these metrics and many more, COLM holds a Value grade of B, while LULU has a Value grade of D.
COLM has seen stronger estimate revision activity and sports more attractive valuation metrics than LULU, so it seems like value investors will conclude that COLM is the superior option right now.
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COLM vs. LULU: Which Stock Is the Better Value Option?
Investors looking for stocks in the Textile - Apparel sector might want to consider either Columbia Sportswear (COLM - Free Report) or Lululemon (LULU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Columbia Sportswear has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that COLM is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
COLM currently has a forward P/E ratio of 12.41, while LULU has a forward P/E of 29.92. We also note that COLM has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LULU currently has a PEG ratio of 1.50.
Another notable valuation metric for COLM is its P/B ratio of 2.52. 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, LULU has a P/B of 13.54.
Based on these metrics and many more, COLM holds a Value grade of B, while LULU has a Value grade of D.
COLM has seen stronger estimate revision activity and sports more attractive valuation metrics than LULU, so it seems like value investors will conclude that COLM is the superior option right now.