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Are Investors Undervaluing These Retail-Wholesale Stocks 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Tilly's (TLYS - Free Report) . TLYS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.68 right now. For comparison, its industry sports an average P/E of 13.75. Over the past 52 weeks, TLYS's Forward P/E has been as high as 20.94 and as low as -78.88, with a median of 14.08.

We should also highlight that TLYS has a P/B ratio of 2.95. The P/B ratio pits a stock's market value against 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 5.04. Over the past year, TLYS's P/B has been as high as 3.16 and as low as 1.59, with a median of 2.43.

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 0.64. This compares to its industry's average P/S of 0.7.

If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Zumiez (ZUMZ - Free Report) . ZUMZ is a # 1 (Strong Buy) stock with a Value score of A.

Additionally, Zumiez has a P/B ratio of 2.16 while its industry's price-to-book ratio sits at 5.04. For ZUMZ, this valuation metric has been as high as 2.59, as low as 1.63, with a median of 1.98 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Tilly's and Zumiez are likely undervalued currently. And when considering the strength of its earnings outlook, TLYS and ZUMZ sticks out as one of the market's strongest value stocks.


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Zumiez Inc. (ZUMZ) - free report >>

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