GOOS or IDEXY: Which Is the Better Value Stock Right Now?
In This Article:
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Canada Goose (GOOS) and Industria de Diseno Textil SA (IDEXY). 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.
Advertisement: High Yield Savings Offers
Right now, Canada Goose is sporting a Zacks Rank of #2 (Buy), while Industria de Diseno Textil SA has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GOOS is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
GOOS currently has a forward P/E ratio of 13.25, while IDEXY has a forward P/E of 24.35. We also note that GOOS has a PEG ratio of 0.74. 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. IDEXY currently has a PEG ratio of 2.79.
Another notable valuation metric for GOOS is its P/B ratio of 2.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IDEXY has a P/B of 7.88.
These are just a few of the metrics contributing to GOOS's Value grade of A and IDEXY's Value grade of D.
GOOS sticks out from IDEXY in both our Zacks Rank and Style Scores models, so value investors will likely feel that GOOS is the better 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
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
Industria de Diseno Textil SA (IDEXY) : Free Stock Analysis Report