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Are Investors Undervaluing Spartan Stores (SPTN) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Spartan Stores (SPTN - Free Report) . SPTN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.51, which compares to its industry's average of 15.64. Over the past 52 weeks, SPTN's Forward P/E has been as high as 14.89 and as low as 6.03, with a median of 9.93.

Investors will also notice that SPTN has a PEG ratio of 1.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SPTN's PEG compares to its industry's average PEG of 1.72. Within the past year, SPTN's PEG has been as high as 1.94 and as low as 0.86, with a median of 1.34.

We should also highlight that SPTN has a P/B ratio of 1.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.25. Over the past year, SPTN's P/B has been as high as 1.21 and as low as 0.47, with a median of 0.72.

Finally, investors will want to recognize that SPTN has a P/CF ratio of 7.34. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.44. SPTN's P/CF has been as high as 7.98 and as low as 3.53, with a median of 5.72, all within the past year.

These are just a handful of the figures considered in Spartan Stores'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 SPTN is an impressive value stock right now.


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