Yahoo Finance TPR or PPRUY: Which Is the Better Value Stock Right Now?
Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Tapestry (TPR) 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Tapestry has a Zacks Rank of #2 (Buy), while Kering SA has a Zacks Rank of #4 (Sell). This means that TPR'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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TPR currently has a forward P/E ratio of 11.58, while PPRUY has a forward P/E of 18.16. We also note that TPR has a PEG ratio of 0.93. 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. PPRUY currently has a PEG ratio of 2.49.
Another notable valuation metric for TPR is its P/B ratio of 4.40. 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, PPRUY has a P/B of 5.21.
Based on these metrics and many more, TPR holds a Value grade of A, while PPRUY has a Value grade of D.
TPR stands above PPRUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TPR is the superior value option right now.
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Tapestry, Inc. (TPR) : Free Stock Analysis Report
Kering SA (PPRUY) : Free Stock Analysis Report
