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Crocs, Inc. (CROX) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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Crocs, Inc. (CROX) - free report >>
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) - free report >>
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CROX or LVMUY: Which Is the Better Value Stock Right Now?
Investors interested in Textile - Apparel stocks are likely familiar with Crocs (CROX - Free Report) and LVMH-Moet Hennessy Louis Vuitton SA (LVMUY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Crocs has a Zacks Rank of #2 (Buy), while LVMH-Moet Hennessy Louis Vuitton SA has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that CROX likely has seen a stronger improvement to its earnings outlook than LVMUY 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 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.
CROX currently has a forward P/E ratio of 11.11, while LVMUY has a forward P/E of 25. We also note that CROX has a PEG ratio of 1.59. 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. LVMUY currently has a PEG ratio of 1.90.
Another notable valuation metric for CROX is its P/B ratio of 5.31. 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, LVMUY has a P/B of 6.29.
These metrics, and several others, help CROX earn a Value grade of B, while LVMUY has been given a Value grade of D.
CROX sticks out from LVMUY in both our Zacks Rank and Style Scores models, so value investors will likely feel that CROX is the better option right now.