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SIG vs. CFRUY: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Retail - Jewelry sector might want to consider either Signet (SIG - Free Report) or Compagnie Financiere Richemont AG (CFRUY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Signet has a Zacks Rank of #1 (Strong Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #4 (Sell) right now. This means that SIG'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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SIG currently has a forward P/E ratio of 4.89, while CFRUY has a forward P/E of 21.75. We also note that SIG has a PEG ratio of 0.61. 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. CFRUY currently has a PEG ratio of 1.25.
Another notable valuation metric for SIG is its P/B ratio of 2.42. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CFRUY has a P/B of 5.41.
These metrics, and several others, help SIG earn a Value grade of A, while CFRUY has been given a Value grade of D.
SIG stands above CFRUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIG is the superior value option right now.
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SIG vs. CFRUY: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Retail - Jewelry sector might want to consider either Signet (SIG - Free Report) or Compagnie Financiere Richemont AG (CFRUY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Signet has a Zacks Rank of #1 (Strong Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #4 (Sell) right now. This means that SIG'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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SIG currently has a forward P/E ratio of 4.89, while CFRUY has a forward P/E of 21.75. We also note that SIG has a PEG ratio of 0.61. 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. CFRUY currently has a PEG ratio of 1.25.
Another notable valuation metric for SIG is its P/B ratio of 2.42. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CFRUY has a P/B of 5.41.
These metrics, and several others, help SIG earn a Value grade of A, while CFRUY has been given a Value grade of D.
SIG stands above CFRUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIG is the superior value option right now.