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 Investors Undervaluing Designer Brands (DBI) Right Now?
Read MoreHide Full Article
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
One company to watch right now is Designer Brands (DBI - Free Report) . DBI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.64. This compares to its industry's average Forward P/E of 10.11. Over the past 52 weeks, DBI's Forward P/E has been as high as 13.13 and as low as 6.05, with a median of 7.79.
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. DBI has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.37.
Finally, our model also underscores that DBI has a P/CF ratio of 4.44. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.61. Over the past 52 weeks, DBI's P/CF has been as high as 15.35 and as low as -35.69, with a median of 4.71.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at MINISO Group Holding Limited (MNSO - Free Report) . MNSO is a # 2 (Buy) stock with a Value score of A.
MINISO Group Holding Limited is currently trading with a Forward P/E ratio of 9.97 while its PEG ratio sits at 0.22. Both of the company's metrics compare favorably to its industry's average P/E of 10.11 and average PEG ratio of 0.66.
Over the last 12 months, MNSO's P/E has been as high as 29.32, as low as 8, with a median of 16.58, and its PEG ratio has been as high as 0.35, as low as 0.18, with a median of 0.24.
Additionally, MINISO Group Holding Limited has a P/B ratio of 1.71 while its industry's price-to-book ratio sits at 2.43. For MNSO, this valuation metric has been as high as 5.07, as low as 1.30, with a median of 2.30 over the past year.
These are only a few of the key metrics included in Designer Brands and MINISO Group Holding Limited strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DBI and MNSO look like an impressive 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 Investors Undervaluing Designer Brands (DBI) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
One company to watch right now is Designer Brands (DBI - Free Report) . DBI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.64. This compares to its industry's average Forward P/E of 10.11. Over the past 52 weeks, DBI's Forward P/E has been as high as 13.13 and as low as 6.05, with a median of 7.79.
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. DBI has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.37.
Finally, our model also underscores that DBI has a P/CF ratio of 4.44. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.61. Over the past 52 weeks, DBI's P/CF has been as high as 15.35 and as low as -35.69, with a median of 4.71.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at MINISO Group Holding Limited (MNSO - Free Report) . MNSO is a # 2 (Buy) stock with a Value score of A.
MINISO Group Holding Limited is currently trading with a Forward P/E ratio of 9.97 while its PEG ratio sits at 0.22. Both of the company's metrics compare favorably to its industry's average P/E of 10.11 and average PEG ratio of 0.66.
Over the last 12 months, MNSO's P/E has been as high as 29.32, as low as 8, with a median of 16.58, and its PEG ratio has been as high as 0.35, as low as 0.18, with a median of 0.24.
Additionally, MINISO Group Holding Limited has a P/B ratio of 1.71 while its industry's price-to-book ratio sits at 2.43. For MNSO, this valuation metric has been as high as 5.07, as low as 1.30, with a median of 2.30 over the past year.
These are only a few of the key metrics included in Designer Brands and MINISO Group Holding Limited strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DBI and MNSO look like an impressive value stock at the moment.