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GES or VFC: Which Is the Better Value Stock Right Now?
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Investors interested in Textile - Apparel stocks are likely familiar with Guess (GES - Free Report) and V.F. (VFC - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Guess has a Zacks Rank of #1 (Strong Buy), while V.F. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GES has an improving earnings outlook. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GES currently has a forward P/E ratio of 21.69, while VFC has a forward P/E of 25.57. We also note that GES has a PEG ratio of 1.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VFC currently has a PEG ratio of 2.40.
Another notable valuation metric for GES is its P/B ratio of 2.10. 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, VFC has a P/B of 9.81.
These metrics, and several others, help GES earn a Value grade of B, while VFC has been given a Value grade of D.
GES has seen stronger estimate revision activity and sports more attractive valuation metrics than VFC, so it seems like value investors will conclude that GES is the superior option right now.
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GES or VFC: Which Is the Better Value Stock Right Now?
Investors interested in Textile - Apparel stocks are likely familiar with Guess (GES - Free Report) and V.F. (VFC - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Guess has a Zacks Rank of #1 (Strong Buy), while V.F. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GES has an improving earnings outlook. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GES currently has a forward P/E ratio of 21.69, while VFC has a forward P/E of 25.57. We also note that GES has a PEG ratio of 1.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VFC currently has a PEG ratio of 2.40.
Another notable valuation metric for GES is its P/B ratio of 2.10. 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, VFC has a P/B of 9.81.
These metrics, and several others, help GES earn a Value grade of B, while VFC has been given a Value grade of D.
GES has seen stronger estimate revision activity and sports more attractive valuation metrics than VFC, so it seems like value investors will conclude that GES is the superior option right now.