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ADDYY vs. NKE: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Adidas AG (ADDYY - Free Report) and Nike (NKE - 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.
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.
Right now, Adidas AG is sporting a Zacks Rank of #2 (Buy), while Nike has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ADDYY has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
ADDYY currently has a forward P/E ratio of 24.67, while NKE has a forward P/E of 25.92. We also note that ADDYY has a PEG ratio of 0.52. 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. NKE currently has a PEG ratio of 1.73.
Another notable valuation metric for ADDYY is its P/B ratio of 5.73. 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, NKE has a P/B of 5.87.
Based on these metrics and many more, ADDYY holds a Value grade of B, while NKE has a Value grade of D.
ADDYY 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 ADDYY is likely the superior value option right now.
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ADDYY vs. NKE: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Adidas AG (ADDYY - Free Report) and Nike (NKE - 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.
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.
Right now, Adidas AG is sporting a Zacks Rank of #2 (Buy), while Nike has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ADDYY has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
ADDYY currently has a forward P/E ratio of 24.67, while NKE has a forward P/E of 25.92. We also note that ADDYY has a PEG ratio of 0.52. 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. NKE currently has a PEG ratio of 1.73.
Another notable valuation metric for ADDYY is its P/B ratio of 5.73. 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, NKE has a P/B of 5.87.
Based on these metrics and many more, ADDYY holds a Value grade of B, while NKE has a Value grade of D.
ADDYY 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 ADDYY is likely the superior value option right now.