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ZGN vs. ONON: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Ermenegildo Zegna N.V. (ZGN - Free Report) or On Holding (ONON - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Ermenegildo Zegna N.V. and On Holding are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ZGN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
ZGN currently has a forward P/E ratio of 20.01, while ONON has a forward P/E of 54.98. We also note that ZGN has a PEG ratio of 2.05. 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. ONON currently has a PEG ratio of 2.61.
Another notable valuation metric for ZGN is its P/B ratio of 3.34. 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, ONON has a P/B of 15.56.
Based on these metrics and many more, ZGN holds a Value grade of B, while ONON has a Value grade of F.
ZGN sticks out from ONON in both our Zacks Rank and Style Scores models, so value investors will likely feel that ZGN is the better option right now.
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ZGN vs. ONON: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Ermenegildo Zegna N.V. (ZGN - Free Report) or On Holding (ONON - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Ermenegildo Zegna N.V. and On Holding are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ZGN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
ZGN currently has a forward P/E ratio of 20.01, while ONON has a forward P/E of 54.98. We also note that ZGN has a PEG ratio of 2.05. 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. ONON currently has a PEG ratio of 2.61.
Another notable valuation metric for ZGN is its P/B ratio of 3.34. 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, ONON has a P/B of 15.56.
Based on these metrics and many more, ZGN holds a Value grade of B, while ONON has a Value grade of F.
ZGN sticks out from ONON in both our Zacks Rank and Style Scores models, so value investors will likely feel that ZGN is the better option right now.