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Are Investors Undervaluing These Consumer Discretionary 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.
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 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 Delta Apparel . DLA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.26. This compares to its industry's average Forward P/E of 13.85. Over the last 12 months, DLA's Forward P/E has been as high as 15.86 and as low as 7.45, with a median of 9.61.
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. DLA has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.71.
Finally, investors should note that DLA has a P/CF ratio of 5.64. 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 20.93. Within the past 12 months, DLA's P/CF has been as high as 72.89 and as low as 5.05, with a median of 6.23.
Kontoor Brands (KTB - Free Report) may be another strong Textile - Apparel stock to add to your shortlist. KTB is a # 2 (Buy) stock with a Value grade of A.
Kontoor Brands is currently trading with a Forward P/E ratio of 8.56 while its PEG ratio sits at 1.07. Both of the company's metrics compare favorably to its industry's average P/E of 13.85 and average PEG ratio of 0.75.
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Are Investors Undervaluing These Consumer Discretionary 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.
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 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 Delta Apparel . DLA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.26. This compares to its industry's average Forward P/E of 13.85. Over the last 12 months, DLA's Forward P/E has been as high as 15.86 and as low as 7.45, with a median of 9.61.
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. DLA has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.71.
Finally, investors should note that DLA has a P/CF ratio of 5.64. 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 20.93. Within the past 12 months, DLA's P/CF has been as high as 72.89 and as low as 5.05, with a median of 6.23.
Kontoor Brands (KTB - Free Report) may be another strong Textile - Apparel stock to add to your shortlist. KTB is a # 2 (Buy) stock with a Value grade of A.
Kontoor Brands is currently trading with a Forward P/E ratio of 8.56 while its PEG ratio sits at 1.07. Both of the company's metrics compare favorably to its industry's average P/E of 13.85 and average PEG ratio of 0.75.