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PVH vs. COLM: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Textile - Apparel sector have probably already heard of PVH (PVH - Free Report) and Columbia Sportswear (COLM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, PVH is sporting a Zacks Rank of #2 (Buy), while Columbia Sportswear has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PVH is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PVH currently has a forward P/E ratio of 8.21, while COLM has a forward P/E of 16.03. We also note that PVH has a PEG ratio of 0.80. 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. COLM currently has a PEG ratio of 1.89.
Another notable valuation metric for PVH is its P/B ratio of 0.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COLM has a P/B of 2.86.
Based on these metrics and many more, PVH holds a Value grade of A, while COLM has a Value grade of C.
PVH stands above COLM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PVH is the superior value option right now.
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PVH vs. COLM: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Textile - Apparel sector have probably already heard of PVH (PVH - Free Report) and Columbia Sportswear (COLM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, PVH is sporting a Zacks Rank of #2 (Buy), while Columbia Sportswear has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PVH is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PVH currently has a forward P/E ratio of 8.21, while COLM has a forward P/E of 16.03. We also note that PVH has a PEG ratio of 0.80. 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. COLM currently has a PEG ratio of 1.89.
Another notable valuation metric for PVH is its P/B ratio of 0.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COLM has a P/B of 2.86.
Based on these metrics and many more, PVH holds a Value grade of A, while COLM has a Value grade of C.
PVH stands above COLM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PVH is the superior value option right now.