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GPS or DECK: 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 Deckers (DECK - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Gap is sporting a Zacks Rank of #1 (Strong Buy), while Deckers has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that GPS likely has seen a stronger improvement to its earnings outlook than DECK has recently. But this is just one factor that value investors are interested in.
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.
GPS currently has a forward P/E ratio of 18.19, while DECK has a forward P/E of 29.48. 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. DECK currently has a PEG ratio of 1.55.
Another notable valuation metric for GPS is its P/B ratio of 3.53. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DECK has a P/B of 10.71.
These metrics, and several others, help GPS earn a Value grade of A, while DECK has been given a Value grade of C.
GPS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GPS is likely the superior value option right now.
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GPS or DECK: 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 Deckers (DECK - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Gap is sporting a Zacks Rank of #1 (Strong Buy), while Deckers has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that GPS likely has seen a stronger improvement to its earnings outlook than DECK has recently. But this is just one factor that value investors are interested in.
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.
GPS currently has a forward P/E ratio of 18.19, while DECK has a forward P/E of 29.48. 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. DECK currently has a PEG ratio of 1.55.
Another notable valuation metric for GPS is its P/B ratio of 3.53. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DECK has a P/B of 10.71.
These metrics, and several others, help GPS earn a Value grade of A, while DECK has been given a Value grade of C.
GPS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GPS is likely the superior value option right now.