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TLYS vs. GOOS: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Tilly's (TLYS - Free Report) and Canada Goose (GOOS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Tilly's and Canada Goose are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that TLYS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

TLYS currently has a forward P/E ratio of 13.89, while GOOS has a forward P/E of 29.90. We also note that TLYS has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GOOS currently has a PEG ratio of 1.36.

Another notable valuation metric for TLYS is its P/B ratio of 1.99. 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, GOOS has a P/B of 13.88.

These are just a few of the metrics contributing to TLYS's Value grade of B and GOOS's Value grade of D.

TLYS sticks out from GOOS in both our Zacks Rank and Style Scores models, so value investors will likely feel that TLYS is the better option right now.


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Tilly's, Inc. (TLYS) - free report >>

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