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CROX vs. LULU: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Textile - Apparel stocks have likely encountered both Crocs (CROX - Free Report) and Lululemon (LULU - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Crocs has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CROX likely has seen a stronger improvement to its earnings outlook than LULU has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
CROX currently has a forward P/E ratio of 9.95, while LULU has a forward P/E of 25.82. We also note that CROX has a PEG ratio of 0.66. 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. LULU currently has a PEG ratio of 1.29.
Another notable valuation metric for CROX is its P/B ratio of 8.40. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LULU has a P/B of 12.29.
These metrics, and several others, help CROX earn a Value grade of B, while LULU has been given a Value grade of D.
CROX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CROX is likely the superior value option right now.
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CROX vs. LULU: Which Stock Should Value Investors Buy Now?
Investors with an interest in Textile - Apparel stocks have likely encountered both Crocs (CROX - Free Report) and Lululemon (LULU - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Crocs has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CROX likely has seen a stronger improvement to its earnings outlook than LULU has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
CROX currently has a forward P/E ratio of 9.95, while LULU has a forward P/E of 25.82. We also note that CROX has a PEG ratio of 0.66. 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. LULU currently has a PEG ratio of 1.29.
Another notable valuation metric for CROX is its P/B ratio of 8.40. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LULU has a P/B of 12.29.
These metrics, and several others, help CROX earn a Value grade of B, while LULU has been given a Value grade of D.
CROX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CROX is likely the superior value option right now.