Are Investors Undervaluing These Retail-Wholesale Stocks 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is The Buckle (BKE). BKE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.41, while its industry has an average P/E of 13.60. Over the last 12 months, BKE's Forward P/E has been as high as 17.83 and as low as 8.03, with a median of 12.21.
Investors should also recognize that BKE has a P/B ratio of 3.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.73. Over the past year, BKE's P/B has been as high as 5.67 and as low as 3.20, with a median of 4.68.
Another great Retail - Apparel and Shoes stock you could consider is Zumiez (ZUMZ), which is a # 1 (Strong Buy) stock with a Value Score of A.
Zumiez sports a P/B ratio of 1.92 as well; this compares to its industry's price-to-book ratio of 4.73. In the past 52 weeks, ZUMZ's P/B has been as high as 2.36, as low as 1.63, with a median of 1.98.
Value investors will likely look at more than just these metrics, but the above data helps show that The Buckle and Zumiez are likely undervalued currently. And when considering the strength of its earnings outlook, BKE and ZUMZ sticks out as one of the market's strongest value stocks.
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Buckle, Inc. The (BKE): Free Stock Analysis Report
Zumiez Inc. (ZUMZ): Free Stock Analysis Report
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