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VSCO vs. TPR: Which Stock Is the Better Value Option?
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Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Victoria's Secret (VSCO - Free Report) and Tapestry (TPR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Victoria's Secret is sporting a Zacks Rank of #1 (Strong Buy), while Tapestry has a Zacks Rank of #2 (Buy). This means that VSCO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
VSCO currently has a forward P/E ratio of 14.87, while TPR has a forward P/E of 23.66. We also note that VSCO has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TPR currently has a PEG ratio of 1.83.
Another notable valuation metric for VSCO is its P/B ratio of 4.55. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TPR has a P/B of 56.06.
These are just a few of the metrics contributing to VSCO's Value grade of A and TPR's Value grade of D.
VSCO has seen stronger estimate revision activity and sports more attractive valuation metrics than TPR, so it seems like value investors will conclude that VSCO is the superior option right now.
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VSCO vs. TPR: Which Stock Is the Better Value Option?
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Victoria's Secret (VSCO - Free Report) and Tapestry (TPR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Victoria's Secret is sporting a Zacks Rank of #1 (Strong Buy), while Tapestry has a Zacks Rank of #2 (Buy). This means that VSCO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
VSCO currently has a forward P/E ratio of 14.87, while TPR has a forward P/E of 23.66. We also note that VSCO has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TPR currently has a PEG ratio of 1.83.
Another notable valuation metric for VSCO is its P/B ratio of 4.55. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TPR has a P/B of 56.06.
These are just a few of the metrics contributing to VSCO's Value grade of A and TPR's Value grade of D.
VSCO has seen stronger estimate revision activity and sports more attractive valuation metrics than TPR, so it seems like value investors will conclude that VSCO is the superior option right now.