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Are These Retail-Wholesale Stocks Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Designer Brands (DBI - Free Report) . DBI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.88 right now. For comparison, its industry sports an average P/E of 12.71. DBI's Forward P/E has been as high as 46.05 and as low as 7.22, with a median of 14.10, all within the past year.
Another notable valuation metric for DBI is its P/B ratio of 2.49. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.78. Within the past 52 weeks, DBI's P/B has been as high as 5.57 and as low as 2.27, with a median of 3.40.
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. DBI has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.58.
Finally, investors should note that DBI has a P/CF ratio of 11.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DBI's current P/CF looks attractive when compared to its industry's average P/CF of 13.14. Within the past 12 months, DBI's P/CF has been as high as 15.35 and as low as -41.18, with a median of -3.34.
Tapestry (TPR - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. TPR is a # 2 (Buy) stock with a Value grade of A.
Shares of Tapestry are currently trading at a forward earnings multiple of 9.98 and a PEG ratio of 0.81 compared to its industry's P/E and PEG ratios of 12.71 and 0.76, respectively.
Over the last 12 months, TPR's P/E has been as high as 17.24, as low as 9.81, with a median of 12.69, and its PEG ratio has been as high as 1.72, as low as 0.80, with a median of 1.26.
Furthermore, Tapestry holds a P/B ratio of 3.53 and its industry's price-to-book ratio is 3.78. TPR's P/B has been as high as 4.54, as low as 3.23, with a median of 3.67 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Designer Brands and Tapestry are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DBI and TPR feels like a great value stock at the moment.
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Are These Retail-Wholesale Stocks Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Designer Brands (DBI - Free Report) . DBI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.88 right now. For comparison, its industry sports an average P/E of 12.71. DBI's Forward P/E has been as high as 46.05 and as low as 7.22, with a median of 14.10, all within the past year.
Another notable valuation metric for DBI is its P/B ratio of 2.49. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.78. Within the past 52 weeks, DBI's P/B has been as high as 5.57 and as low as 2.27, with a median of 3.40.
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. DBI has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.58.
Finally, investors should note that DBI has a P/CF ratio of 11.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DBI's current P/CF looks attractive when compared to its industry's average P/CF of 13.14. Within the past 12 months, DBI's P/CF has been as high as 15.35 and as low as -41.18, with a median of -3.34.
Tapestry (TPR - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. TPR is a # 2 (Buy) stock with a Value grade of A.
Shares of Tapestry are currently trading at a forward earnings multiple of 9.98 and a PEG ratio of 0.81 compared to its industry's P/E and PEG ratios of 12.71 and 0.76, respectively.
Over the last 12 months, TPR's P/E has been as high as 17.24, as low as 9.81, with a median of 12.69, and its PEG ratio has been as high as 1.72, as low as 0.80, with a median of 1.26.
Furthermore, Tapestry holds a P/B ratio of 3.53 and its industry's price-to-book ratio is 3.78. TPR's P/B has been as high as 4.54, as low as 3.23, with a median of 3.67 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Designer Brands and Tapestry are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DBI and TPR feels like a great value stock at the moment.