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WWW or NKE: Which Is the Better Value Stock Right Now?

Zacks Equity Research
Updated
Is (AMTD) Outperforming Other Finance Stocks This Year?

Investors looking for stocks in the Shoes and Retail Apparel sector might want to consider either Wolverine World Wide (WWW) or Nike (NKE). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Wolverine World Wide has a Zacks Rank of #2 (Buy), while Nike has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that WWW likely has seen a stronger improvement to its earnings outlook than NKE has recently. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

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Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

WWW currently has a forward P/E ratio of 16.30, while NKE has a forward P/E of 28.91. We also note that WWW has a PEG ratio of 1.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NKE currently has a PEG ratio of 2.52.

Another notable valuation metric for WWW is its P/B ratio of 3.26. 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. By comparison, NKE has a P/B of 13.41.

Based on these metrics and many more, WWW holds a Value grade of B, while NKE has a Value grade of D.

WWW sticks out from NKE in both our Zacks Rank and Style Scores models, so value investors will likely feel that WWW is the better option right now.


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Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
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