Is Capri Holdings (CPRI) 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. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Capri Holdings (CPRI) is a stock many investors are watching right now. CPRI is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.5, which compares to its industry's average of 15.00. Over the last 12 months, CPRI's Forward P/E has been as high as 20.01 and as low as 8.03, with a median of 13.50.

CPRI is also sporting a PEG ratio of 0.39. 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. CPRI's PEG compares to its industry's average PEG of 0.99. Within the past year, CPRI's PEG has been as high as 7.00 and as low as 0.32, with a median of 4.20.

These are only a few of the key metrics included in Capri Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CPRI looks like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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