GIL vs. LVMUY: Which Stock Is the Better Value Option?
Investors with an interest in Textile - Apparel stocks have likely encountered both Gildan Activewear (GIL) and LVMH-Moet Hennessy Louis Vuitton SA (LVMUY). But which of these two stocks presents investors with the better value opportunity right now? 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.
Gildan Activewear has a Zacks Rank of #2 (Buy), while LVMH-Moet Hennessy Louis Vuitton SA has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GIL is likely seeing its earnings outlook improve to a greater extent. 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.
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.
GIL currently has a forward P/E ratio of 12.75, while LVMUY has a forward P/E of 25.57. We also note that GIL has a PEG ratio of 1.42. 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. LVMUY currently has a PEG ratio of 1.95.
Another notable valuation metric for GIL is its P/B ratio of 3.26. 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, LVMUY has a P/B of 6.61.
Based on these metrics and many more, GIL holds a Value grade of B, while LVMUY has a Value grade of D.
GIL has seen stronger estimate revision activity and sports more attractive valuation metrics than LVMUY, so it seems like value investors will conclude that GIL is the superior option right now.
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Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report
