Is Tapestry (TPR) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Tapestry (TPR). TPR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.99 right now. For comparison, its industry sports an average P/E of 16.31. Over the last 12 months, TPR's Forward P/E has been as high as 17.24 and as low as 7.69, with a median of 13.69.
Investors will also notice that TPR has a PEG ratio of 1.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TPR's industry has an average PEG of 1.37 right now. TPR's PEG has been as high as 1.72 and as low as 0.77, with a median of 1.31, all within the past year.
Investors should also recognize that TPR has a P/B ratio of 3.49. Investors use the P/B ratio to look at a stock's market value versus 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 6.28. TPR's P/B has been as high as 4.54 and as low as 1.71, with a median of 3.53, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Tapestry is likely undervalued currently. And when considering the strength of its earnings outlook, TPR sticks out at as one of the market's strongest value stocks.
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Tapestry, Inc. (TPR): Free Stock Analysis Report
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