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Are Investors Undervaluing These Retail-Wholesale 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.
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 Capri Holdings (CPRI - Free Report) . CPRI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.62 right now. For comparison, its industry sports an average P/E of 10.92. CPRI's Forward P/E has been as high as 32.82 and as low as 7.01, with a median of 11.41, all within the past year.
Investors should also recognize that CPRI has a P/B ratio of 2.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.15. Over the past year, CPRI's P/B has been as high as 4.17 and as low as 2.46, with a median of 3.55.
Finally, we should also recognize that CPRI has a P/CF ratio of 6.82. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.94. Over the past 52 weeks, CPRI's P/CF has been as high as 19.05 and as low as -42.40, with a median of 9.98.
Investors could also keep in mind Tapestry (TPR - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Tapestry is trading at a forward earnings multiple of 9.08 at the moment, with a PEG ratio of 0.73. This compares to its industry's average P/E of 10.92 and average PEG ratio of 0.51.
TPR's Forward P/E has been as high as 17.24 and as low as 8.20, with a median of 12.36. During the same time period, its PEG ratio has been as high as 1.72, as low as 0.66, with a median of 1.19.
Tapestry sports a P/B ratio of 3.21 as well; this compares to its industry's price-to-book ratio of 3.15. In the past 52 weeks, TPR's P/B has been as high as 4.54, as low as 2.90, with a median of 3.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Capri Holdings and Tapestry are likely undervalued currently. And when considering the strength of its earnings outlook, CPRI and TPR sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing These Retail-Wholesale Stocks 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 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 Capri Holdings (CPRI - Free Report) . CPRI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.62 right now. For comparison, its industry sports an average P/E of 10.92. CPRI's Forward P/E has been as high as 32.82 and as low as 7.01, with a median of 11.41, all within the past year.
Investors should also recognize that CPRI has a P/B ratio of 2.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.15. Over the past year, CPRI's P/B has been as high as 4.17 and as low as 2.46, with a median of 3.55.
Finally, we should also recognize that CPRI has a P/CF ratio of 6.82. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.94. Over the past 52 weeks, CPRI's P/CF has been as high as 19.05 and as low as -42.40, with a median of 9.98.
Investors could also keep in mind Tapestry (TPR - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Tapestry is trading at a forward earnings multiple of 9.08 at the moment, with a PEG ratio of 0.73. This compares to its industry's average P/E of 10.92 and average PEG ratio of 0.51.
TPR's Forward P/E has been as high as 17.24 and as low as 8.20, with a median of 12.36. During the same time period, its PEG ratio has been as high as 1.72, as low as 0.66, with a median of 1.19.
Tapestry sports a P/B ratio of 3.21 as well; this compares to its industry's price-to-book ratio of 3.15. In the past 52 weeks, TPR's P/B has been as high as 4.54, as low as 2.90, with a median of 3.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Capri Holdings and Tapestry are likely undervalued currently. And when considering the strength of its earnings outlook, CPRI and TPR sticks out as one of the market's strongest value stocks.