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Are Investors Undervaluing These Consumer Discretionary Stocks 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Jerash Holdings (JRSH - Free Report) is a stock many investors are watching right now. JRSH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.78 right now. For comparison, its industry sports an average P/E of 13.42. Over the past 52 weeks, JRSH's Forward P/E has been as high as 16.97 and as low as 7.99, with a median of 9.87.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JRSH has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that JRSH has a P/CF ratio of 8.08. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.19. Within the past 12 months, JRSH's P/CF has been as high as 16.23 and as low as 7.03, with a median of 11.55.
Another great Textile - Apparel stock you could consider is Kontoor Brands (KTB - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Kontoor Brands currently holds a Forward P/E ratio of 9.17, and its PEG ratio is 1.15. In comparison, its industry sports average P/E and PEG ratios of 13.42 and 0.60.
KTB's price-to-earnings ratio has been as high as 17.47 and as low as 8.26, with a median of 12.44, while its PEG ratio has been as high as 2.91 and as low as 1.03, with a median of 1.56, all within the past year.
Kontoor Brands sports a P/B ratio of 17.11 as well; this compares to its industry's price-to-book ratio of 7.30. In the past 52 weeks, KTB's P/B has been as high as 36.16, as low as 14.71, with a median of 20.13.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jerash Holdings and Kontoor Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JRSH and KTB feels like a great value stock at the moment.
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Are Investors Undervaluing These Consumer Discretionary Stocks 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Jerash Holdings (JRSH - Free Report) is a stock many investors are watching right now. JRSH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.78 right now. For comparison, its industry sports an average P/E of 13.42. Over the past 52 weeks, JRSH's Forward P/E has been as high as 16.97 and as low as 7.99, with a median of 9.87.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JRSH has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that JRSH has a P/CF ratio of 8.08. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.19. Within the past 12 months, JRSH's P/CF has been as high as 16.23 and as low as 7.03, with a median of 11.55.
Another great Textile - Apparel stock you could consider is Kontoor Brands (KTB - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Kontoor Brands currently holds a Forward P/E ratio of 9.17, and its PEG ratio is 1.15. In comparison, its industry sports average P/E and PEG ratios of 13.42 and 0.60.
KTB's price-to-earnings ratio has been as high as 17.47 and as low as 8.26, with a median of 12.44, while its PEG ratio has been as high as 2.91 and as low as 1.03, with a median of 1.56, all within the past year.
Kontoor Brands sports a P/B ratio of 17.11 as well; this compares to its industry's price-to-book ratio of 7.30. In the past 52 weeks, KTB's P/B has been as high as 36.16, as low as 14.71, with a median of 20.13.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jerash Holdings and Kontoor Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JRSH and KTB feels like a great value stock at the moment.