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Is Citi Trends (CTRN) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...

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This story originally appeared on Zacks

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

- Zacks

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Citi Trends (CTRN). CTRN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11.57 right now. For comparison, its industry sports an average P/E of 15.41. CTRN's Forward P/E has been as high as 35.21 and as low as 10.14, with a median of 16.79, all within the past year.

We should also highlight that CTRN has a P/B ratio of 5.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CTRN's current P/B looks attractive when compared to its industry's average P/B of 5.99. Within the past 52 weeks, CTRN's P/B has been as high as 6.73 and as low as 1.61, with a median of 4.95.

These are just a handful of the figures considered in Citi Trends's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CTRN is an impressive value stock right now.



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