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Are These Consumer Discretionary Stocks a Great Value Stocks Right Now?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Delta Apparel is a stock many investors are watching right now. DLA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.88, while its industry has an average P/E of 14.47. DLA's Forward P/E has been as high as 17.09 and as low as 8.22, with a median of 12.83, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. DLA has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.8.

Another great Textile - Apparel stock you could consider is Guess (GES - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, Guess has a P/B ratio of 2.01 while its industry's price-to-book ratio sits at 8.02. For GES, this valuation metric has been as high as 3.46, as low as 2.01, with a median of 2.51 over the past year.

These are just a handful of the figures considered in Delta Apparel and Guess'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 DLA and GES is an impressive value stock right now.


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