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ANF vs. TPR: Which Stock Is the Better Value Option?
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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 offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Abercrombie & Fitch and Tapestry are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ANF currently has a forward P/E ratio of 14.98, while TPR has a forward P/E of 15.76. We also note that ANF has a PEG ratio of 1.50. 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 1.58.
Another notable valuation metric for ANF is its P/B ratio of 5.3. 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 36.58.
Based on these metrics and many more, ANF holds a Value grade of A, while TPR has a Value grade of C.
Both ANF and TPR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ANF is the superior value option right now.
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ANF vs. TPR: Which Stock Is the Better Value Option?
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 offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Abercrombie & Fitch and Tapestry are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ANF currently has a forward P/E ratio of 14.98, while TPR has a forward P/E of 15.76. We also note that ANF has a PEG ratio of 1.50. 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 1.58.
Another notable valuation metric for ANF is its P/B ratio of 5.3. 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 36.58.
Based on these metrics and many more, ANF holds a Value grade of A, while TPR has a Value grade of C.
Both ANF and TPR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ANF is the superior value option right now.