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GPS or FIGS: 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 Gap (GPS - Free Report) or 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 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GPS currently has a forward P/E ratio of 18.22, while FIGS has a forward P/E of 52.48. We also note that GPS has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FIGS currently has a PEG ratio of 3.03.
Another notable valuation metric for GPS is its P/B ratio of 3.10. 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, FIGS has a P/B of 3.12.
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.
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GPS or FIGS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Gap (GPS - Free Report) or 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 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GPS currently has a forward P/E ratio of 18.22, while FIGS has a forward P/E of 52.48. We also note that GPS has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FIGS currently has a PEG ratio of 3.03.
Another notable valuation metric for GPS is its P/B ratio of 3.10. 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, FIGS has a P/B of 3.12.
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.