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HIBB or PPRUY: 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 Hibbett (HIBB - Free Report) or Kering SA (PPRUY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Hibbett has a Zacks Rank of #2 (Buy), while Kering SA has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that HIBB likely has seen a stronger improvement to its earnings outlook than PPRUY has recently. However, value investors will care about much more than just this.

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 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.

HIBB currently has a forward P/E ratio of 7.99, while PPRUY has a forward P/E of 15.60. We also note that HIBB has a PEG ratio of 3.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PPRUY currently has a PEG ratio of 4.97.

Another notable valuation metric for HIBB is its P/B ratio of 1.90. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PPRUY has a P/B of 3.25.

Based on these metrics and many more, HIBB holds a Value grade of A, while PPRUY has a Value grade of D.

HIBB has seen stronger estimate revision activity and sports more attractive valuation metrics than PPRUY, so it seems like value investors will conclude that HIBB is the superior option right now.


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Hibbett, Inc. (HIBB) - free report >>

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