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URBN vs. ZGN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Urban Outfitters (URBN - Free Report) and Ermenegildo Zegna N.V. (ZGN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Urban Outfitters is sporting a Zacks Rank of #2 (Buy), while Ermenegildo Zegna N.V. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that URBN likely has seen a stronger improvement to its earnings outlook than ZGN has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
URBN currently has a forward P/E ratio of 11.86, while ZGN has a forward P/E of 29.10. We also note that URBN has a PEG ratio of 0.66. 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. ZGN currently has a PEG ratio of 1.05.
Another notable valuation metric for URBN is its P/B ratio of 1.85. 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, ZGN has a P/B of 3.98.
These metrics, and several others, help URBN earn a Value grade of A, while ZGN has been given 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 vs. ZGN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Urban Outfitters (URBN - Free Report) and Ermenegildo Zegna N.V. (ZGN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Urban Outfitters is sporting a Zacks Rank of #2 (Buy), while Ermenegildo Zegna N.V. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that URBN likely has seen a stronger improvement to its earnings outlook than ZGN has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
URBN currently has a forward P/E ratio of 11.86, while ZGN has a forward P/E of 29.10. We also note that URBN has a PEG ratio of 0.66. 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. ZGN currently has a PEG ratio of 1.05.
Another notable valuation metric for URBN is its P/B ratio of 1.85. 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, ZGN has a P/B of 3.98.
These metrics, and several others, help URBN earn a Value grade of A, while ZGN has been given 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.