ZACKS·2025-10-13 16:40Core Insights - Investors in the Retail - Apparel and Shoes sector may consider Ermenegildo Zegna N.V. (ZGN) or On Holding (ONON) as potential undervalued stocks [1] Group 1: Company Rankings and Earnings Outlook - ZGN has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ONON has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting ZGN has an improving earnings outlook [3] Group 2: Valuation Metrics - ZGN's forward P/E ratio is 20.01, significantly lower than ONON's forward P/E of 54.98 [5] - ZGN has a PEG ratio of 2.05, while ONON's PEG ratio is 2.61, indicating ZGN may be more favorably valued in terms of expected earnings growth [5] - ZGN's P/B ratio is 3.34 compared to ONON's P/B of 15.56, further highlighting ZGN's relative valuation advantage [6] Group 3: Value Grades - Based on various valuation metrics, ZGN holds a Value grade of B, whereas ONON has a Value grade of F, suggesting ZGN is the better option for value investors [6]