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

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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Canada Goose (GOOS - Free Report) or Figs (FIGS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Canada Goose is sporting a Zacks Rank of #2 (Buy), while Figs has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that GOOS likely has seen a stronger improvement to its earnings outlook than FIGS has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

GOOS currently has a forward P/E ratio of 12.37, while FIGS has a forward P/E of 59.56. We also note that GOOS has a PEG ratio of 0.45. 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. FIGS currently has a PEG ratio of 27.45.

Another notable valuation metric for GOOS is its P/B ratio of 5.52. 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, FIGS has a P/B of 5.85.

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

GOOS stands above FIGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GOOS is the superior value option right now.


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