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JWN or FIGS: Which Is the Better Value Stock Right Now?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Nordstrom (JWN - Free Report) and Figs (FIGS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Nordstrom is sporting a Zacks Rank of #2 (Buy), while Figs has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that JWN likely has seen a stronger improvement to its earnings outlook than FIGS has recently. But this is just one piece of the puzzle for value investors.
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 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.
JWN currently has a forward P/E ratio of 7.75, while FIGS has a forward P/E of 241.67. We also note that JWN has a PEG ratio of 1.34. 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. FIGS currently has a PEG ratio of 9.92.
Another notable valuation metric for JWN is its P/B ratio of 3.30. 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, FIGS has a P/B of 3.92.
Based on these metrics and many more, JWN holds a Value grade of A, while FIGS has a Value grade of C.
JWN has seen stronger estimate revision activity and sports more attractive valuation metrics than FIGS, so it seems like value investors will conclude that JWN is the superior option right now.
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JWN or FIGS: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Nordstrom (JWN - Free Report) and Figs (FIGS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Nordstrom is sporting a Zacks Rank of #2 (Buy), while Figs has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that JWN likely has seen a stronger improvement to its earnings outlook than FIGS has recently. But this is just one piece of the puzzle for value investors.
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 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.
JWN currently has a forward P/E ratio of 7.75, while FIGS has a forward P/E of 241.67. We also note that JWN has a PEG ratio of 1.34. 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. FIGS currently has a PEG ratio of 9.92.
Another notable valuation metric for JWN is its P/B ratio of 3.30. 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, FIGS has a P/B of 3.92.
Based on these metrics and many more, JWN holds a Value grade of A, while FIGS has a Value grade of C.
JWN has seen stronger estimate revision activity and sports more attractive valuation metrics than FIGS, so it seems like value investors will conclude that JWN is the superior option right now.