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Is Capri Holdings (CPRI) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Capri Holdings (CPRI - Free Report) . CPRI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.5, while its industry has an average P/E of 13.84. Over the past year, CPRI's Forward P/E has been as high as 20.01 and as low as 8.03, with a median of 13.50.

Investors will also notice that CPRI has a PEG ratio of 0.39. 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. CPRI's industry has an average PEG of 0.85 right now. CPRI's PEG has been as high as 7.00 and as low as 0.32, with a median of 4.20, all within the past year.

Investors could also keep in mind Urban Outfitters (URBN - Free Report) , another Retail - Apparel and Shoes stock with a Zacks Rank of #2 (Buy) and Value grade of A.

Shares of Urban Outfitters are currently trading at a forward earnings multiple of 13.05 and a PEG ratio of 1.07 compared to its industry's P/E and PEG ratios of 13.84 and 0.85, respectively.

URBN's price-to-earnings ratio has been as high as 15.49 and as low as 9.10, with a median of 12.80, while its PEG ratio has been as high as 1.78 and as low as 0.80, with a median of 1.11, all within the past year.

Urban Outfitters sports a P/B ratio of 2.48 as well; this compares to its industry's price-to-book ratio of 5.96. In the past 52 weeks, URBN's P/B has been as high as 2.97, as low as 1.40, with a median of 2.14.

Value investors will likely look at more than just these metrics, but the above data helps show that Capri Holdings and Urban Outfitters are likely undervalued currently. And when considering the strength of its earnings outlook, CPRI and URBN sticks out as one of the market's strongest value stocks.

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