We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are These Consumer Discretionary Stocks Undervalued Right Now?
Read MoreHide Full Article
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Central Garden & Pet (CENT - Free Report) . CENT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for CENT is its P/B ratio of 2.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.96. Over the past 12 months, CENT's P/B has been as high as 2.98 and as low as 1.96, with a median of 2.26.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CENT has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.84.
Central Garden & Pet (CENTA - Free Report) may be another strong Consumer Products - Discretionary stock to add to your shortlist. CENTA is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Central Garden & Pet holds a P/B ratio of 1.86 and its industry's price-to-book ratio is 4.96. CENTA's P/B has been as high as 2.67, as low as 1.77, with a median of 2.05 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 Central Garden & Pet and Central Garden & Pet are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CENT and CENTA feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Central Garden & Pet (CENT - Free Report) . CENT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for CENT is its P/B ratio of 2.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.96. Over the past 12 months, CENT's P/B has been as high as 2.98 and as low as 1.96, with a median of 2.26.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CENT has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.84.
Central Garden & Pet (CENTA - Free Report) may be another strong Consumer Products - Discretionary stock to add to your shortlist. CENTA is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Central Garden & Pet holds a P/B ratio of 1.86 and its industry's price-to-book ratio is 4.96. CENTA's P/B has been as high as 2.67, as low as 1.77, with a median of 2.05 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 Central Garden & Pet and Central Garden & Pet are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CENT and CENTA feels like a great value stock at the moment.