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Are Investors Undervaluing Signet (SIG) 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.
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 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 to watch right now is Signet (SIG - Free Report) . SIG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is SIG's P/B ratio of 2.62. 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. This stock's P/B looks solid versus its industry's average P/B of 2.64. Within the past 52 weeks, SIG's P/B has been as high as 3.22 and as low as 0.99, with a median of 2.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SIG has a P/S ratio of 0.59. This compares to its industry's average P/S of 1.
Finally, our model also underscores that SIG has a P/CF ratio of 6.08. 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. SIG's current P/CF looks attractive when compared to its industry's average P/CF of 9.41. Within the past 12 months, SIG's P/CF has been as high as 26.46 and as low as -13.15, with a median of 6.60.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Signet is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SIG feels like a great value stock at the moment.
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Are Investors Undervaluing Signet (SIG) Right Now?
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.
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 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 to watch right now is Signet (SIG - Free Report) . SIG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is SIG's P/B ratio of 2.62. 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. This stock's P/B looks solid versus its industry's average P/B of 2.64. Within the past 52 weeks, SIG's P/B has been as high as 3.22 and as low as 0.99, with a median of 2.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SIG has a P/S ratio of 0.59. This compares to its industry's average P/S of 1.
Finally, our model also underscores that SIG has a P/CF ratio of 6.08. 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. SIG's current P/CF looks attractive when compared to its industry's average P/CF of 9.41. Within the past 12 months, SIG's P/CF has been as high as 26.46 and as low as -13.15, with a median of 6.60.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Signet is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SIG feels like a great value stock at the moment.