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URBN or ZGN: Which Is the Better Value Stock Right Now?
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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Urban Outfitters (URBN - Free Report) and Ermenegildo Zegna N.V. (ZGN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Urban Outfitters and Ermenegildo Zegna N.V. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that URBN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
URBN currently has a forward P/E ratio of 11.95, while ZGN has a forward P/E of 25.44. We also note that URBN has a PEG ratio of 0.66. 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. ZGN currently has a PEG ratio of 0.92.
Another notable valuation metric for URBN is its P/B ratio of 1.90. 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, ZGN has a P/B of 3.48.
Based on these metrics and many more, URBN holds a Value grade of A, while ZGN has a Value grade of C.
URBN stands above ZGN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that URBN is the superior value option right now.
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URBN or ZGN: Which Is the Better Value Stock Right Now?
Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Urban Outfitters (URBN - Free Report) and Ermenegildo Zegna N.V. (ZGN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Urban Outfitters and Ermenegildo Zegna N.V. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that URBN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
URBN currently has a forward P/E ratio of 11.95, while ZGN has a forward P/E of 25.44. We also note that URBN has a PEG ratio of 0.66. 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. ZGN currently has a PEG ratio of 0.92.
Another notable valuation metric for URBN is its P/B ratio of 1.90. 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, ZGN has a P/B of 3.48.
Based on these metrics and many more, URBN holds a Value grade of A, while ZGN has a Value grade of C.
URBN stands above ZGN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that URBN is the superior value option right now.