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Is Tapestry (TPR) Stock Undervalued Right Now?


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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company value investors might notice is Tapestry (TPR). TPR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.78, while its industry has an average P/E of 12.97. Over the past year, TPR's Forward P/E has been as high as 18.78 and as low as 10.03, with a median of 12.59.

We also note that TPR holds a PEG ratio of 1.10. 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 PEG compares to its industry's average PEG of 1.26. Over the last 12 months, TPR's PEG has been as high as 1.61 and as low as 0.93, with a median of 1.15.

Another notable valuation metric for TPR is its P/B ratio of 2.50. 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. This stock's P/B looks attractive against its industry's average P/B of 3.42. Over the past year, TPR's P/B has been as high as 4.72 and as low as 2.33, with a median of 3.04.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Investing Ideas , Stocks
Referenced Symbols: TPR



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