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GAP or TPR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Gap (GAP - Free Report) or Tapestry (TPR - 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.
Gap and Tapestry are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GAP is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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 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.
GAP currently has a forward P/E ratio of 8.57, while TPR has a forward P/E of 16.66. We also note that GAP has a PEG ratio of 1.18. 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 1.67.
Another notable valuation metric for GAP is its P/B ratio of 1.98. 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, TPR has a P/B of 38.61.
Based on these metrics and many more, GAP holds a Value grade of A, while TPR has a Value grade of C.
GAP stands above TPR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GAP is the superior value option right now.
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GAP or TPR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Gap (GAP - Free Report) or Tapestry (TPR - 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.
Gap and Tapestry are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GAP is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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 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.
GAP currently has a forward P/E ratio of 8.57, while TPR has a forward P/E of 16.66. We also note that GAP has a PEG ratio of 1.18. 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 1.67.
Another notable valuation metric for GAP is its P/B ratio of 1.98. 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, TPR has a P/B of 38.61.
Based on these metrics and many more, GAP holds a Value grade of A, while TPR has a Value grade of C.
GAP stands above TPR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GAP is the superior value option right now.