GAP vs. DECK: Which Stock Is the Better Value Option?

Core Viewpoint - The analysis compares Gap (GAP) and Deckers (DECK) to determine which stock is more attractive to value investors, highlighting that GAP is currently the superior value option based on various valuation metrics [1][7]. Valuation Metrics - Both GAP and DECK hold a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - GAP has a forward P/E ratio of 12.07, while DECK has a significantly higher forward P/E of 35.53 [5]. - The PEG ratio for GAP is 1.09, suggesting it is more reasonably priced relative to its expected earnings growth compared to DECK's PEG ratio of 2.74 [5]. - GAP's P/B ratio is 2.90, indicating a lower market value compared to its book value, while DECK's P/B ratio is much higher at 13.28 [6]. - These valuation metrics contribute to GAP earning a Value grade of A, whereas DECK has a Value grade of F [6].