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Is Capri Holdings (CPRI) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Capri Holdings (CPRI - Free Report) . CPRI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.59, while its industry has an average P/E of 9.73. CPRI's Forward P/E has been as high as 13.89 and as low as 5.57, with a median of 10.20, all within the past year.

Investors should also note that CPRI holds a PEG ratio of 0.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CPRI's PEG compares to its industry's average PEG of 0.78. Within the past year, CPRI's PEG has been as high as 0.73 and as low as 0.10, with a median of 0.31.

Designer Brands (DBI - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. DBI is a # 1 (Strong Buy) stock with a Value grade of A.

Additionally, Designer Brands has a P/B ratio of 2.44 while its industry's price-to-book ratio sits at 2.54. For DBI, this valuation metric has been as high as 4.05, as low as 2.01, with a median of 2.63 over the past year.

These are only a few of the key metrics included in Capri Holdings and Designer Brands strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPRI and DBI look like an impressive value stock at the moment.


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