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PVH or COLM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Textile - Apparel sector might want to consider either PVH (PVH - Free Report) or Columbia Sportswear (COLM - 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.
PVH has a Zacks Rank of #2 (Buy), while Columbia Sportswear has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PVH is likely seeing its earnings outlook improve to a greater extent. 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 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.
PVH currently has a forward P/E ratio of 11.41, while COLM has a forward P/E of 16.41. We also note that PVH has a PEG ratio of 0.75. 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. COLM currently has a PEG ratio of 1.56.
Another notable valuation metric for PVH is its P/B ratio of 1.41. 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, COLM has a P/B of 2.50.
These metrics, and several others, help PVH earn a Value grade of A, while COLM has been given a Value grade of C.
PVH sticks out from COLM in both our Zacks Rank and Style Scores models, so value investors will likely feel that PVH is the better option right now.
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PVH or COLM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Textile - Apparel sector might want to consider either PVH (PVH - Free Report) or Columbia Sportswear (COLM - 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.
PVH has a Zacks Rank of #2 (Buy), while Columbia Sportswear has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PVH is likely seeing its earnings outlook improve to a greater extent. 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 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.
PVH currently has a forward P/E ratio of 11.41, while COLM has a forward P/E of 16.41. We also note that PVH has a PEG ratio of 0.75. 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. COLM currently has a PEG ratio of 1.56.
Another notable valuation metric for PVH is its P/B ratio of 1.41. 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, COLM has a P/B of 2.50.
These metrics, and several others, help PVH earn a Value grade of A, while COLM has been given a Value grade of C.
PVH sticks out from COLM in both our Zacks Rank and Style Scores models, so value investors will likely feel that PVH is the better option right now.