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CROX or LULU: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Textile - Apparel sector have probably already heard of Crocs (CROX - Free Report) and Lululemon (LULU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Crocs and Lululemon are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CROX currently has a forward P/E ratio of 9.56, while LULU has a forward P/E of 35.83. We also note that CROX has a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LULU currently has a PEG ratio of 1.79.
Another notable valuation metric for CROX is its P/B ratio of 9.62. 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, LULU has a P/B of 15.81.
These are just a few of the metrics contributing to CROX's Value grade of A and LULU's Value grade of D.
Both CROX and LULU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CROX is the superior value option right now.
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CROX or LULU: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Textile - Apparel sector have probably already heard of Crocs (CROX - Free Report) and Lululemon (LULU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Crocs and Lululemon are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CROX currently has a forward P/E ratio of 9.56, while LULU has a forward P/E of 35.83. We also note that CROX has a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LULU currently has a PEG ratio of 1.79.
Another notable valuation metric for CROX is its P/B ratio of 9.62. 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, LULU has a P/B of 15.81.
These are just a few of the metrics contributing to CROX's Value grade of A and LULU's Value grade of D.
Both CROX and LULU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CROX is the superior value option right now.