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SIG vs. CFRUY: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Retail - Jewelry sector might want to consider either Signet (SIG - Free Report) or Compagnie Financiere Richemont AG (CFRUY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Signet has a Zacks Rank of #2 (Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #4 (Sell). This means that SIG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
SIG currently has a forward P/E ratio of 7.02, while CFRUY has a forward P/E of 15.09. We also note that SIG has a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CFRUY currently has a PEG ratio of 1.35.
Another notable valuation metric for SIG is its P/B ratio of 1.93. 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, CFRUY has a P/B of 6.15.
Based on these metrics and many more, SIG holds a Value grade of A, while CFRUY has a Value grade of C.
SIG stands above CFRUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIG is the superior value option right now.
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SIG vs. CFRUY: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Retail - Jewelry sector might want to consider either Signet (SIG - Free Report) or Compagnie Financiere Richemont AG (CFRUY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Signet has a Zacks Rank of #2 (Buy), while Compagnie Financiere Richemont AG has a Zacks Rank of #4 (Sell). This means that SIG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
SIG currently has a forward P/E ratio of 7.02, while CFRUY has a forward P/E of 15.09. We also note that SIG has a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CFRUY currently has a PEG ratio of 1.35.
Another notable valuation metric for SIG is its P/B ratio of 1.93. 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, CFRUY has a P/B of 6.15.
Based on these metrics and many more, SIG holds a Value grade of A, while CFRUY has a Value grade of C.
SIG stands above CFRUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIG is the superior value option right now.