Investors with an interest in Textile - Apparel stocks have likely encountered both Gildan Activewear (GIL) and Kontoor Brands (KTB). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Gildan Activewear and Kontoor Brands are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

GIL currently has a forward P/E ratio of 16.76, while KTB has a forward P/E of 18.98. We also note that GIL has a PEG ratio of 1.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KTB currently has a PEG ratio of 2.37.

Another notable valuation metric for GIL is its P/B ratio of 4.91. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KTB has a P/B of 14.12.

These are just a few of the metrics contributing to GIL's Value grade of B and KTB's Value grade of C.

Both GIL and KTB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GIL is the superior value option right now.

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Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report

Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report

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