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ANF vs. TPR: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Abercrombie & Fitch (ANF - 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Abercrombie & Fitch and Tapestry are sporting Zacks Ranks of #1 (Strong 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 ANF is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
ANF currently has a forward P/E ratio of 12.38, while TPR has a forward P/E of 14.71. We also note that ANF has a PEG ratio of 1.24. 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 1.48.
Another notable valuation metric for ANF is its P/B ratio of 4.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TPR has a P/B of 34.08.
These metrics, and several others, help ANF earn a Value grade of A, while TPR has been given a Value grade of C.
ANF has seen stronger estimate revision activity and sports more attractive valuation metrics than TPR, so it seems like value investors will conclude that ANF is the superior option right now.
Image: Bigstock
ANF vs. TPR: Which Stock Should Value Investors Buy Now?
Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Abercrombie & Fitch (ANF - 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Abercrombie & Fitch and Tapestry are sporting Zacks Ranks of #1 (Strong 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 ANF is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
ANF currently has a forward P/E ratio of 12.38, while TPR has a forward P/E of 14.71. We also note that ANF has a PEG ratio of 1.24. 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 1.48.
Another notable valuation metric for ANF is its P/B ratio of 4.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TPR has a P/B of 34.08.
These metrics, and several others, help ANF earn a Value grade of A, while TPR has been given a Value grade of C.
ANF has seen stronger estimate revision activity and sports more attractive valuation metrics than TPR, so it seems like value investors will conclude that ANF is the superior option right now.