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CHS vs. GOOS: Which Stock Is the Better Value Option?

Zacks Equity Research
Updated
Is (WM) Outperforming Other Business Services Stocks This Year?

Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Chico's FAS (CHS) and Canada Goose (GOOS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Chico's FAS has a Zacks Rank of #2 (Buy), while Canada Goose has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CHS has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

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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.

CHS currently has a forward P/E ratio of 12.30, while GOOS has a forward P/E of 74.60. We also note that CHS has a PEG ratio of 1.23. 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. GOOS currently has a PEG ratio of 2.44.

Another notable valuation metric for CHS is its P/B ratio of 1.51. 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, GOOS has a P/B of 40.15.

These metrics, and several others, help CHS earn a Value grade of A, while GOOS has been given a Value grade of F.

CHS has seen stronger estimate revision activity and sports more attractive valuation metrics than GOOS, so it seems like value investors will conclude that CHS is the superior option right now.


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Chico's FAS, Inc. (CHS) : Free Stock Analysis Report
 
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
 
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