Yahoo Finance Are Investors Undervaluing Canada Goose (GOOS) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Canada Goose (GOOS). GOOS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 15.60, while its industry has an average P/E of 17.20. GOOS's Forward P/E has been as high as 18.80 and as low as 8.83, with a median of 14.58, all within the past year.
We should also highlight that GOOS has a P/B ratio of 4.16. 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. This stock's P/B looks solid versus its industry's average P/B of 5.10. GOOS's P/B has been as high as 6.54 and as low as 3.33, with a median of 4.40, over the past year.
Finally, investors will want to recognize that GOOS has a P/CF ratio of 9.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.83. Over the past year, GOOS's P/CF has been as high as 14.99 and as low as 7.92, with a median of 9.91.
Value investors will likely look at more than just these metrics, but the above data helps show that Canada Goose is likely undervalued currently. And when considering the strength of its earnings outlook, GOOS sticks out at as one of the market's strongest value stocks.
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Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
