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CROX or LULU: Which Is the Better Value Stock Right 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.
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.
Currently, both Crocs and Lululemon are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 10.05, while LULU has a forward P/E of 29.94. We also note that CROX has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LULU currently has a PEG ratio of 1.50.
Another notable valuation metric for CROX is its P/B ratio of 7.43. 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, LULU has a P/B of 13.64.
These are just a few of the metrics contributing to CROX's Value grade of B 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 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.
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.
Currently, both Crocs and Lululemon are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 10.05, while LULU has a forward P/E of 29.94. We also note that CROX has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LULU currently has a PEG ratio of 1.50.
Another notable valuation metric for CROX is its P/B ratio of 7.43. 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, LULU has a P/B of 13.64.
These are just a few of the metrics contributing to CROX's Value grade of B 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.