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

Core Viewpoint - The analysis compares Ermenegildo Zegna N.V. (ZGN) and Deckers (DECK) to determine which stock represents a better value investment opportunity for investors interested in the Retail - Apparel and Shoes sector [1]. Group 1: Zacks Rank and Earnings Outlook - Ermenegildo Zegna N.V. has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Deckers has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank system emphasizes companies with strong earnings estimate revisions, suggesting that ZGN is likely experiencing a more favorable earnings outlook compared to DECK [3]. Group 2: Valuation Metrics - ZGN has a forward P/E ratio of 24.37, significantly lower than DECK's forward P/E of 35.57, indicating that ZGN may be undervalued relative to DECK [5]. - The PEG ratio for ZGN is 2.18, while DECK's PEG ratio is 3.64, further suggesting that ZGN offers better value considering its expected EPS growth rate [5]. - ZGN's P/B ratio is 5.17, compared to DECK's P/B of 13.14, reinforcing the notion that ZGN is more attractively priced based on its book value [6]. Group 3: Overall Value Assessment - Based on various valuation metrics, ZGN holds a Value grade of B, while DECK has a Value grade of C, indicating that ZGN is currently the superior value option [6].