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Is Tapestry (TPR) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Tapestry (TPR - Free Report) . TPR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.09. This compares to its industry's average Forward P/E of 14.70. Over the past 52 weeks, TPR's Forward P/E has been as high as 19.41 and as low as 11.03, with a median of 15.48.

We also note that TPR holds a PEG ratio of 1.12. 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. TPR's industry has an average PEG of 1.32 right now. Over the last 12 months, TPR's PEG has been as high as 1.73 and as low as 0.98, with a median of 1.39.

Another notable valuation metric for TPR is its P/B ratio of 2.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.51. Over the past 12 months, TPR's P/B has been as high as 5.01 and as low as 2.57, with a median of 4.03.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Tapestry is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TPR feels like a great value stock at the moment.


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