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Are Investors Undervaluing These Consumer Discretionary Stocks Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Jerash Holdings (JRSH - Free Report) . JRSH 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 7.90. This compares to its industry's average Forward P/E of 10.88. JRSH's Forward P/E has been as high as 12.89 and as low as 7.90, with a median of 9.87, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. JRSH has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.73.
Finally, investors should note that JRSH has a P/CF ratio of 7.29. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. JRSH's P/CF compares to its industry's average P/CF of 20.54. JRSH's P/CF has been as high as 13.57 and as low as 7.03, with a median of 9.66, all within the past year.
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.
Shares of Kontoor Brands are currently trading at a forward earnings multiple of 8.46 and a PEG ratio of 1.06 compared to its industry's P/E and PEG ratios of 10.88 and 0.60, respectively.
KTB's price-to-earnings ratio has been as high as 17.47 and as low as 8.26, with a median of 12.31, while its PEG ratio has been as high as 2.91 and as low as 1.03, with a median of 1.54, all within the past year.
Kontoor Brands also has a P/B ratio of 15.52 compared to its industry's price-to-book ratio of 7.49. Over the past year, its P/B ratio has been as high as 28.74, as low as 14.71, with a median of 19.75.
These are just a handful of the figures considered in Jerash Holdings and Kontoor Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JRSH and KTB is an impressive value stock right now.
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Are Investors Undervaluing These Consumer Discretionary Stocks Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Jerash Holdings (JRSH - Free Report) . JRSH 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 7.90. This compares to its industry's average Forward P/E of 10.88. JRSH's Forward P/E has been as high as 12.89 and as low as 7.90, with a median of 9.87, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. JRSH has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.73.
Finally, investors should note that JRSH has a P/CF ratio of 7.29. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. JRSH's P/CF compares to its industry's average P/CF of 20.54. JRSH's P/CF has been as high as 13.57 and as low as 7.03, with a median of 9.66, all within the past year.
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.
Shares of Kontoor Brands are currently trading at a forward earnings multiple of 8.46 and a PEG ratio of 1.06 compared to its industry's P/E and PEG ratios of 10.88 and 0.60, respectively.
KTB's price-to-earnings ratio has been as high as 17.47 and as low as 8.26, with a median of 12.31, while its PEG ratio has been as high as 2.91 and as low as 1.03, with a median of 1.54, all within the past year.
Kontoor Brands also has a P/B ratio of 15.52 compared to its industry's price-to-book ratio of 7.49. Over the past year, its P/B ratio has been as high as 28.74, as low as 14.71, with a median of 19.75.
These are just a handful of the figures considered in Jerash Holdings and Kontoor Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JRSH and KTB is an impressive value stock right now.