Should Value Investors Buy Canada Goose (GOOS) Stock?

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.

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.

One stock to keep an eye on is Canada Goose (GOOS). GOOS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.76, which compares to its industry's average of 17.03. Over the past 52 weeks, GOOS's Forward P/E has been as high as 15.63 and as low as 8.09, with a median of 11.70.

Investors will also notice that GOOS has a PEG ratio of 0.71. 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. GOOS's PEG compares to its industry's average PEG of 1.34. Over the last 12 months, GOOS's PEG has been as high as 2.33 and as low as 0.48, with a median of 0.60.

Another notable valuation metric for GOOS is its P/B ratio of 2.81. 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. GOOS's current P/B looks attractive when compared to its industry's average P/B of 5.71. Over the past 12 months, GOOS's P/B has been as high as 4.88 and as low as 1.67, with a median of 3.39.

Finally, we should also recognize that GOOS has a P/CF ratio of 7.03. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.91. Within the past 12 months, GOOS's P/CF has been as high as 10.04 and as low as 4.16, with a median of 6.92.

These are just a handful of the figures considered in Canada Goose's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GOOS is an impressive value stock right now.

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

Zacks Investment Research