Is Tilly's (TLYS) 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. Nevertheless, we are always paying attention to...
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Tilly's (TLYS). TLYS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.19, which compares to its industry's average of 14.52. TLYS's Forward P/E has been as high as 22.16 and as low as -78.88, with a median of 15.49, all within the past year.
We should also highlight that TLYS has a P/B ratio of 2.51. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. TLYS's current P/B looks attractive when compared to its industry's average P/B of 5.22. Within the past 52 weeks, TLYS's P/B has been as high as 3.01 and as low as 1.23, with a median of 2.15.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TLYS has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.7.
Value investors will likely look at more than just these metrics, but the above data helps show that Tilly's is likely undervalued currently. And when considering the strength of its earnings outlook, TLYS sticks out at as one of the market's strongest value stocks.
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Tillys, Inc. (TLYS): Free Stock Analysis Report
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