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GPS vs. FIGS: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Gap (GPS - Free Report) and 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.
Currently, Gap has a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold). This means that GPS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
GPS currently has a forward P/E ratio of 19.09, while FIGS has a forward P/E of 78.24. We also note that GPS has a PEG ratio of 1.59. 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 4.51.
Another notable valuation metric for GPS is its P/B ratio of 2.83. 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 3.16.
Based on these metrics and many more, GPS holds a Value grade of B, while FIGS has a Value grade of D.
GPS sticks out from FIGS in both our Zacks Rank and Style Scores models, so value investors will likely feel that GPS is the better option right now.
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GPS vs. FIGS: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Gap (GPS - Free Report) and 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.
Currently, Gap has a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold). This means that GPS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
GPS currently has a forward P/E ratio of 19.09, while FIGS has a forward P/E of 78.24. We also note that GPS has a PEG ratio of 1.59. 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 4.51.
Another notable valuation metric for GPS is its P/B ratio of 2.83. 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 3.16.
Based on these metrics and many more, GPS holds a Value grade of B, while FIGS has a Value grade of D.
GPS sticks out from FIGS in both our Zacks Rank and Style Scores models, so value investors will likely feel that GPS is the better option right now.