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VSCO vs. TPR: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Victoria's Secret (VSCO - Free Report) and Tapestry (TPR - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Victoria's Secret and Tapestry are both sporting a Zacks Rank of #1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VSCO currently has a forward P/E ratio of 12.57, while TPR has a forward P/E of 22.32. We also note that VSCO has a PEG ratio of 1.32. 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. TPR currently has a PEG ratio of 1.73.
Another notable valuation metric for VSCO is its P/B ratio of 3.84. 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, TPR has a P/B of 52.9.
These are just a few of the metrics contributing to VSCO's Value grade of B and TPR's Value grade of D.
Both VSCO and TPR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VSCO is the superior value option right now.
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VSCO vs. TPR: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Victoria's Secret (VSCO - Free Report) and Tapestry (TPR - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Victoria's Secret and Tapestry are both sporting a Zacks Rank of #1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VSCO currently has a forward P/E ratio of 12.57, while TPR has a forward P/E of 22.32. We also note that VSCO has a PEG ratio of 1.32. 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. TPR currently has a PEG ratio of 1.73.
Another notable valuation metric for VSCO is its P/B ratio of 3.84. 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, TPR has a P/B of 52.9.
These are just a few of the metrics contributing to VSCO's Value grade of B and TPR's Value grade of D.
Both VSCO and TPR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VSCO is the superior value option right now.