GAP or DECK: Which Is the Better Value Stock Right Now?

Core Viewpoint - The article compares Gap (GAP) and Deckers (DECK) to determine which stock is more attractive to value investors, highlighting the importance of valuation metrics alongside earnings outlooks [1][3]. Valuation Metrics - GAP has a forward P/E ratio of 11.95, while DECK has a forward P/E of 37.20, indicating that GAP may be undervalued compared to DECK [5]. - The PEG ratio for GAP is 1.08, suggesting a more favorable valuation relative to its expected earnings growth, whereas DECK has a PEG ratio of 2.86, indicating a higher valuation relative to growth expectations [5]. - GAP's P/B ratio is 2.91, which is significantly lower than DECK's P/B of 13.92, further supporting the notion that GAP is undervalued [6]. Investment Grades - GAP has received a Value grade of A, while DECK has been assigned a Value grade of F, reflecting the disparity in their valuation metrics [6]. - Both companies have a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions, but GAP is considered the superior value option based on its valuation figures [3][7].