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JWN vs. DECK: Which Stock Is the Better Value Option?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Nordstrom (JWN - Free Report) and Deckers (DECK - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Nordstrom has a Zacks Rank of #1 (Strong Buy), while Deckers has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that JWN likely has seen a stronger improvement to its earnings outlook than DECK has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
JWN currently has a forward P/E ratio of 11.81, while DECK has a forward P/E of 29.59. We also note that JWN has a PEG ratio of 2.42. 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. DECK currently has a PEG ratio of 2.74.
Another notable valuation metric for JWN is its P/B ratio of 3.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DECK has a P/B of 11.45.
Based on these metrics and many more, JWN holds a Value grade of A, while DECK has a Value grade of C.
JWN 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 JWN is likely the superior value option right now.
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JWN vs. DECK: Which Stock Is the Better Value Option?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Nordstrom (JWN - Free Report) and Deckers (DECK - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Nordstrom has a Zacks Rank of #1 (Strong Buy), while Deckers has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that JWN likely has seen a stronger improvement to its earnings outlook than DECK has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
JWN currently has a forward P/E ratio of 11.81, while DECK has a forward P/E of 29.59. We also note that JWN has a PEG ratio of 2.42. 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. DECK currently has a PEG ratio of 2.74.
Another notable valuation metric for JWN is its P/B ratio of 3.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DECK has a P/B of 11.45.
Based on these metrics and many more, JWN holds a Value grade of A, while DECK has a Value grade of C.
JWN 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 JWN is likely the superior value option right now.