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Are These Retail-Wholesale Stocks Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is MarineMax (HZO - Free Report) . HZO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.78. This compares to its industry's average Forward P/E of 16.43. Over the past year, HZO's Forward P/E has been as high as 14 and as low as 5.56, with a median of 7.75.

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. HZO has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.71.

Finally, our model also underscores that HZO has a P/CF ratio of 5.59. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.09. Over the past year, HZO's P/CF has been as high as 13.67 and as low as 5.16, with a median of 7.29.

Another great Retail - Miscellaneous stock you could consider is Itochu (ITOCY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Itochu is trading at a forward earnings multiple of 8.96 at the moment, with a PEG ratio of 0.58. This compares to its industry's average P/E of 16.43 and average PEG ratio of 0.64.

ITOCY's price-to-earnings ratio has been as high as 11.36 and as low as 6.76, with a median of 8.14, while its PEG ratio has been as high as 3.07 and as low as 0.34, with a median of 0.53, all within the past year.

Furthermore, Itochu holds a P/B ratio of 1.36 and its industry's price-to-book ratio is 9.24. ITOCY's P/B has been as high as 1.44, as low as 1.15, with a median of 1.26 over the past 12 months.

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


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MarineMax, Inc. (HZO) - free report >>

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