Is Tapestry (TPR) Stock Undervalued 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...
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Tapestry (TPR) is a stock many investors are watching right now. TPR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.83, which compares to its industry's average of 15.64. Over the past year, TPR's Forward P/E has been as high as 17.24 and as low as 8.03, with a median of 13.69.
We should also highlight that TPR has a P/B ratio of 3.45. 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. TPR's current P/B looks attractive when compared to its industry's average P/B of 6.06. Over the past year, TPR's P/B has been as high as 4.54 and as low as 1.71, with a median of 3.53.
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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