Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Hibbett (HIBB - Free Report) and Figs (FIGS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Hibbett and Figs are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that HIBB likely has seen a stronger improvement to its earnings outlook than FIGS has recently. However, value investors will care about much more than just this.

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.

HIBB currently has a forward P/E ratio of 6.28, while FIGS has a forward P/E of 87.69. We also note that HIBB has a PEG ratio of 2.40. 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. FIGS currently has a PEG ratio of 40.41.

Another notable valuation metric for HIBB is its P/B ratio of 2.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, FIGS has a P/B of 6.92.

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

HIBB sticks out from FIGS in both our Zacks Rank and Style Scores models, so value investors will likely feel that HIBB is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hibbett, Inc. (HIBB) - free report >>

FIGS, Inc. (FIGS) - free report >>

Published in