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 Retail-Wholesale Stocks a Great Value Stocks Right Now?
Read MoreHide Full Article
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Itochu (ITOCY - Free Report) is a stock many investors are watching right now. ITOCY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.53. This compares to its industry's average Forward P/E of 16.70. Over the past 52 weeks, ITOCY's Forward P/E has been as high as 11.36 and as low as 6.76, with a median of 8.14.
ITOCY is also sporting a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ITOCY's PEG compares to its industry's average PEG of 0.68. Over the past 52 weeks, ITOCY's PEG has been as high as 3.07 and as low as 0.34, with a median of 0.53.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. ITOCY has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.75.
Finally, investors will want to recognize that ITOCY has a P/CF ratio of 5.16. 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. ITOCY's P/CF compares to its industry's average P/CF of 11.69. Over the past 52 weeks, ITOCY's P/CF has been as high as 6.34 and as low as 4.31, with a median of 4.90.
Another great Retail - Miscellaneous stock you could consider is The ODP Corporation (ODP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The ODP Corporation is trading at a forward earnings multiple of 10.30 at the moment, with a PEG ratio of 1.11. This compares to its industry's average P/E of 16.70 and average PEG ratio of 0.68.
Additionally, The ODP Corporation has a P/B ratio of 1.67 while its industry's price-to-book ratio sits at 9.76. For ODP, this valuation metric has been as high as 1.68, as low as 1, with a median of 1.26 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Itochu and The ODP Corporation are likely undervalued currently. And when considering the strength of its earnings outlook, ITOCY and ODP sticks out as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are These Retail-Wholesale Stocks a Great Value 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Itochu (ITOCY - Free Report) is a stock many investors are watching right now. ITOCY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.53. This compares to its industry's average Forward P/E of 16.70. Over the past 52 weeks, ITOCY's Forward P/E has been as high as 11.36 and as low as 6.76, with a median of 8.14.
ITOCY is also sporting a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ITOCY's PEG compares to its industry's average PEG of 0.68. Over the past 52 weeks, ITOCY's PEG has been as high as 3.07 and as low as 0.34, with a median of 0.53.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. ITOCY has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.75.
Finally, investors will want to recognize that ITOCY has a P/CF ratio of 5.16. 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. ITOCY's P/CF compares to its industry's average P/CF of 11.69. Over the past 52 weeks, ITOCY's P/CF has been as high as 6.34 and as low as 4.31, with a median of 4.90.
Another great Retail - Miscellaneous stock you could consider is The ODP Corporation (ODP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The ODP Corporation is trading at a forward earnings multiple of 10.30 at the moment, with a PEG ratio of 1.11. This compares to its industry's average P/E of 16.70 and average PEG ratio of 0.68.
Additionally, The ODP Corporation has a P/B ratio of 1.67 while its industry's price-to-book ratio sits at 9.76. For ODP, this valuation metric has been as high as 1.68, as low as 1, with a median of 1.26 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Itochu and The ODP Corporation are likely undervalued currently. And when considering the strength of its earnings outlook, ITOCY and ODP sticks out as one of the market's strongest value stocks.