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Should Value Investors Buy Hugo Boss (BOSSY) Stock?

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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Hugo Boss (BOSSY - Free Report) is a stock many investors are watching right now. BOSSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is BOSSY's P/B ratio of 4.11. Investors use the P/B ratio to look at a stock's market value versus 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 6.95. BOSSY's P/B has been as high as 4.60 and as low as 2.89, with a median of 3.53, over the past year.

Finally, we should also recognize that BOSSY has a P/CF ratio of 7.37. 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. BOSSY's P/CF compares to its industry's average P/CF of 20.52. Over the past 52 weeks, BOSSY's P/CF has been as high as 8.25 and as low as 5.07, with a median of 6.51.

Oxford Industries (OXM - Free Report) may be another strong Textile - Apparel stock to add to your shortlist. OXM is a # 2 (Buy) stock with a Value grade of A.

Oxford Industries sports a P/B ratio of 3.50 as well; this compares to its industry's price-to-book ratio of 6.95. In the past 52 weeks, OXM's P/B has been as high as 3.60, as low as 2.53, with a median of 2.91.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Hugo Boss and Oxford Industries are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BOSSY and OXM feels like a great value stock at the moment.


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