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.
TPR or ZGN: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Tapestry (TPR - Free Report) and Ermenegildo Zegna N.V. (ZGN - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Tapestry and Ermenegildo Zegna N.V. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that TPR 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 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 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.
TPR currently has a forward P/E ratio of 11, while ZGN has a forward P/E of 29.74. We also note that TPR has a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ZGN currently has a PEG ratio of 1.07.
Another notable valuation metric for TPR is its P/B ratio of 4.01. 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 4.06.
These metrics, and several others, help TPR earn a Value grade of A, while ZGN has been given a Value grade of C.
TPR has seen stronger estimate revision activity and sports more attractive valuation metrics than ZGN, so it seems like value investors will conclude that TPR is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TPR or ZGN: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Tapestry (TPR - Free Report) and Ermenegildo Zegna N.V. (ZGN - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Tapestry and Ermenegildo Zegna N.V. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that TPR 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 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 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.
TPR currently has a forward P/E ratio of 11, while ZGN has a forward P/E of 29.74. We also note that TPR has a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ZGN currently has a PEG ratio of 1.07.
Another notable valuation metric for TPR is its P/B ratio of 4.01. 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 4.06.
These metrics, and several others, help TPR earn a Value grade of A, while ZGN has been given a Value grade of C.
TPR has seen stronger estimate revision activity and sports more attractive valuation metrics than ZGN, so it seems like value investors will conclude that TPR is the superior option right now.