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ZGN or FIGS: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Ermenegildo Zegna N.V. (ZGN - Free Report) or Figs (FIGS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Ermenegildo Zegna N.V. and Figs are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ZGN is likely seeing its earnings outlook improve to a greater extent. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ZGN currently has a forward P/E ratio of 28.66, while FIGS has a forward P/E of 121.39. We also note that ZGN has a PEG ratio of 1. 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. FIGS currently has a PEG ratio of 12.98.
Another notable valuation metric for ZGN is its P/B ratio of 3.70. 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 4.12.
These are just a few of the metrics contributing to ZGN's Value grade of A and FIGS's Value grade of D.
ZGN stands above FIGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZGN is the superior value option right now.
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ZGN or FIGS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Ermenegildo Zegna N.V. (ZGN - Free Report) or Figs (FIGS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Ermenegildo Zegna N.V. and Figs are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ZGN is likely seeing its earnings outlook improve to a greater extent. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ZGN currently has a forward P/E ratio of 28.66, while FIGS has a forward P/E of 121.39. We also note that ZGN has a PEG ratio of 1. 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. FIGS currently has a PEG ratio of 12.98.
Another notable valuation metric for ZGN is its P/B ratio of 3.70. 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 4.12.
These are just a few of the metrics contributing to ZGN's Value grade of A and FIGS's Value grade of D.
ZGN stands above FIGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZGN is the superior value option right now.