U.S. Markets closed
  • S&P 500

    4,274.04
    -31.16 (-0.72%)
     
  • Dow 30

    33,980.32
    -171.69 (-0.50%)
     
  • Nasdaq

    12,938.12
    -164.43 (-1.25%)
     
  • Russell 2000

    1,987.31
    -33.22 (-1.64%)
     
  • Crude Oil

    87.88
    +1.35 (+1.56%)
     
  • Gold

    1,777.40
    -12.30 (-0.69%)
     
  • Silver

    19.75
    -0.34 (-1.69%)
     
  • EUR/USD

    1.0181
    +0.0010 (+0.1018%)
     
  • 10-Yr Bond

    2.8930
    +0.0690 (+2.44%)
     
  • Vix

    19.90
    +0.21 (+1.07%)
     
  • GBP/USD

    1.2051
    -0.0044 (-0.3615%)
     
  • USD/JPY

    135.0710
    +0.8560 (+0.6378%)
     
  • BTC-USD

    23,398.18
    -560.60 (-2.34%)
     
  • CMC Crypto 200

    557.23
    -15.58 (-2.72%)
     
  • FTSE 100

    7,515.75
    -20.31 (-0.27%)
     
  • Nikkei 225

    29,222.77
    +353.86 (+1.23%)
     

CPRI vs. PPRUY: Which Stock Should Value Investors Buy Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Capri Holdings (CPRI) and Kering SA (PPRUY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Capri Holdings has a Zacks Rank of #2 (Buy), while Kering SA has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CPRI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

CPRI currently has a forward P/E ratio of 7.10, while PPRUY has a forward P/E of 16.53. We also note that CPRI has a PEG ratio of 0.63. 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. PPRUY currently has a PEG ratio of 2.52.

Another notable valuation metric for CPRI is its P/B ratio of 2.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PPRUY has a P/B of 4.16.

These metrics, and several others, help CPRI earn a Value grade of A, while PPRUY has been given a Value grade of C.

CPRI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CPRI is likely the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Capri Holdings Limited (CPRI) : Free Stock Analysis Report
 
Kering SA (PPRUY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research