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SKX or BIRK: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Skechers (SKX - Free Report) or Birkenstock (BIRK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Skechers has a Zacks Rank of #2 (Buy), while Birkenstock has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SKX has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
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.
SKX currently has a forward P/E ratio of 15.96, while BIRK has a forward P/E of 34.05. We also note that SKX has a PEG ratio of 0.94. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BIRK currently has a PEG ratio of 1.20.
Another notable valuation metric for SKX is its P/B ratio of 2.12. 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, BIRK has a P/B of 3.97.
These are just a few of the metrics contributing to SKX's Value grade of A and BIRK's Value grade of F.
SKX has seen stronger estimate revision activity and sports more attractive valuation metrics than BIRK, so it seems like value investors will conclude that SKX is the superior option right now.
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SKX or BIRK: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Skechers (SKX - Free Report) or Birkenstock (BIRK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Skechers has a Zacks Rank of #2 (Buy), while Birkenstock has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SKX has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
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.
SKX currently has a forward P/E ratio of 15.96, while BIRK has a forward P/E of 34.05. We also note that SKX has a PEG ratio of 0.94. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BIRK currently has a PEG ratio of 1.20.
Another notable valuation metric for SKX is its P/B ratio of 2.12. 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, BIRK has a P/B of 3.97.
These are just a few of the metrics contributing to SKX's Value grade of A and BIRK's Value grade of F.
SKX has seen stronger estimate revision activity and sports more attractive valuation metrics than BIRK, so it seems like value investors will conclude that SKX is the superior option right now.