Yahoo Finance PVH or LULU: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Textile - Apparel sector might want to consider either PVH (PVH) or Lululemon (LULU). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Currently, PVH has a Zacks Rank of #2 (Buy), while Lululemon 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 PVH has an improving earnings outlook. However, value investors will care about much more than just this.
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.
PVH currently has a forward P/E ratio of 8.67, while LULU has a forward P/E of 32.60. We also note that PVH has a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LULU currently has a PEG ratio of 1.63.
Another notable valuation metric for PVH is its P/B ratio of 1.10. 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, LULU has a P/B of 14.70.
These metrics, and several others, help PVH earn a Value grade of A, while LULU has been given a Value grade of D.
PVH stands above LULU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PVH is the superior value option right now.
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PVH Corp. (PVH) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
