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HIBB vs. CPRI: Which Stock Should Value Investors Buy Now?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Hibbett (HIBB - Free Report) and Capri Holdings (CPRI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, Hibbett has a Zacks Rank of #1 (Strong Buy), while Capri Holdings has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HIBB has an improving earnings outlook. 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.
HIBB currently has a forward P/E ratio of 8, while CPRI has a forward P/E of 9.63. We also note that HIBB has a PEG ratio of 3.55. 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. CPRI currently has a PEG ratio of 8.52.
Another notable valuation metric for HIBB is its P/B ratio of 2.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CPRI has a P/B of 2.94.
These metrics, and several others, help HIBB earn a Value grade of A, while CPRI has been given a Value grade of D.
HIBB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HIBB is likely the superior value option right now.
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HIBB vs. CPRI: Which Stock Should Value Investors Buy Now?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Hibbett (HIBB - Free Report) and Capri Holdings (CPRI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, Hibbett has a Zacks Rank of #1 (Strong Buy), while Capri Holdings has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HIBB has an improving earnings outlook. 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.
HIBB currently has a forward P/E ratio of 8, while CPRI has a forward P/E of 9.63. We also note that HIBB has a PEG ratio of 3.55. 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. CPRI currently has a PEG ratio of 8.52.
Another notable valuation metric for HIBB is its P/B ratio of 2.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CPRI has a P/B of 2.94.
These metrics, and several others, help HIBB earn a Value grade of A, while CPRI has been given a Value grade of D.
HIBB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HIBB is likely the superior value option right now.