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Are These Consumer Discretionary Stocks Undervalued 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.
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.
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 to watch right now is Academy Sports and Outdoors (ASO - Free Report) . ASO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors should also note that ASO holds a PEG ratio of 0.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ASO's PEG compares to its industry's average PEG of 0.66. Over the last 12 months, ASO's PEG has been as high as 3.65 and as low as 0.39, with a median of 2.
Finally, we should also recognize that ASO has a P/CF ratio of 4.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ASO's current P/CF looks attractive when compared to its industry's average P/CF of 19. Within the past 12 months, ASO's P/CF has been as high as 7.26 and as low as 4.66, with a median of 5.87.
OneWater Marine (ONEW - Free Report) may be another strong Leisure and Recreation Products stock to add to your shortlist. ONEW is a # 2 (Buy) stock with a Value grade of A.
OneWater Marine also has a P/B ratio of 2.86 compared to its industry's price-to-book ratio of 8.40. Over the past year, its P/B ratio has been as high as 3.84, as low as 2.35, with a median of 2.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Academy Sports and Outdoors and OneWater Marine are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASO and ONEW feels like a great value stock at the moment.
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Are These Consumer Discretionary Stocks Undervalued Right Now?
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.
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.
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 to watch right now is Academy Sports and Outdoors (ASO - Free Report) . ASO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors should also note that ASO holds a PEG ratio of 0.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ASO's PEG compares to its industry's average PEG of 0.66. Over the last 12 months, ASO's PEG has been as high as 3.65 and as low as 0.39, with a median of 2.
Finally, we should also recognize that ASO has a P/CF ratio of 4.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ASO's current P/CF looks attractive when compared to its industry's average P/CF of 19. Within the past 12 months, ASO's P/CF has been as high as 7.26 and as low as 4.66, with a median of 5.87.
OneWater Marine (ONEW - Free Report) may be another strong Leisure and Recreation Products stock to add to your shortlist. ONEW is a # 2 (Buy) stock with a Value grade of A.
OneWater Marine also has a P/B ratio of 2.86 compared to its industry's price-to-book ratio of 8.40. Over the past year, its P/B ratio has been as high as 3.84, as low as 2.35, with a median of 2.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Academy Sports and Outdoors and OneWater Marine are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASO and ONEW feels like a great value stock at the moment.