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BOOT vs. FIGS: Which Stock Is the Better Value Option?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Boot Barn (BOOT - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Boot Barn has a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BOOT likely has seen a stronger improvement to its earnings outlook than FIGS has recently. But this is only part of the picture 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.
BOOT currently has a forward P/E ratio of 18.08, while FIGS has a forward P/E of 94.27. We also note that BOOT has a PEG ratio of 2.82. 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. FIGS currently has a PEG ratio of 4.92.
Another notable valuation metric for BOOT is its P/B ratio of 3.50. 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 3.53.
These metrics, and several others, help BOOT earn a Value grade of B, while FIGS has been given a Value grade of C.
BOOT stands above FIGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BOOT is the superior value option right now.
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BOOT vs. FIGS: Which Stock Is the Better Value Option?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Boot Barn (BOOT - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Boot Barn has a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BOOT likely has seen a stronger improvement to its earnings outlook than FIGS has recently. But this is only part of the picture 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.
BOOT currently has a forward P/E ratio of 18.08, while FIGS has a forward P/E of 94.27. We also note that BOOT has a PEG ratio of 2.82. 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. FIGS currently has a PEG ratio of 4.92.
Another notable valuation metric for BOOT is its P/B ratio of 3.50. 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 3.53.
These metrics, and several others, help BOOT earn a Value grade of B, while FIGS has been given a Value grade of C.
BOOT stands above FIGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BOOT is the superior value option right now.