We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GPS or FIGS: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Gap (GPS - Free Report) and Figs (FIGS - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Right now, Gap is sporting a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GPS 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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
GPS currently has a forward P/E ratio of 18.37, while FIGS has a forward P/E of 86.71. We also note that GPS has a PEG ratio of 1.53. 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. FIGS currently has a PEG ratio of 5.
Another notable valuation metric for GPS is its P/B ratio of 3.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FIGS has a P/B of 3.51.
These metrics, and several others, help GPS earn a Value grade of A, while FIGS has been given a Value grade of C.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GPS or FIGS: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Gap (GPS - Free Report) and Figs (FIGS - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Right now, Gap is sporting a Zacks Rank of #1 (Strong Buy), while Figs has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GPS 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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
GPS currently has a forward P/E ratio of 18.37, while FIGS has a forward P/E of 86.71. We also note that GPS has a PEG ratio of 1.53. 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. FIGS currently has a PEG ratio of 5.
Another notable valuation metric for GPS is its P/B ratio of 3.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FIGS has a P/B of 3.51.
These metrics, and several others, help GPS earn a Value grade of A, while FIGS has been given a Value grade of C.
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.