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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Target (TGT - Free Report) . TGT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.72 right now. For comparison, its industry sports an average P/E of 24.73. Over the past 52 weeks, TGT's Forward P/E has been as high as 32.60 and as low as 12.31, with a median of 15.49.
TGT is also sporting a PEG ratio of 1.04. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TGT's PEG compares to its industry's average PEG of 2.29. Within the past year, TGT's PEG has been as high as 3.31 and as low as 0.87, with a median of 1.09.
Investors should also recognize that TGT has a P/B ratio of 4.85. The P/B is a method of comparing a stock's market value to 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 11.24. Over the past 12 months, TGT's P/B has been as high as 7.42 and as low as 3.94, with a median of 5.60.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TGT has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.87.
Finally, we should also recognize that TGT has a P/CF ratio of 9.50. 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. TGT's current P/CF looks attractive when compared to its industry's average P/CF of 26.07. Over the past 52 weeks, TGT's P/CF has been as high as 15.28 and as low as 7.72, with a median of 11.43.
These are just a handful of the figures considered in Target'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 TGT is an impressive value stock right now.
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Is Target (TGT) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Target (TGT - Free Report) . TGT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.72 right now. For comparison, its industry sports an average P/E of 24.73. Over the past 52 weeks, TGT's Forward P/E has been as high as 32.60 and as low as 12.31, with a median of 15.49.
TGT is also sporting a PEG ratio of 1.04. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TGT's PEG compares to its industry's average PEG of 2.29. Within the past year, TGT's PEG has been as high as 3.31 and as low as 0.87, with a median of 1.09.
Investors should also recognize that TGT has a P/B ratio of 4.85. The P/B is a method of comparing a stock's market value to 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 11.24. Over the past 12 months, TGT's P/B has been as high as 7.42 and as low as 3.94, with a median of 5.60.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TGT has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.87.
Finally, we should also recognize that TGT has a P/CF ratio of 9.50. 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. TGT's current P/CF looks attractive when compared to its industry's average P/CF of 26.07. Over the past 52 weeks, TGT's P/CF has been as high as 15.28 and as low as 7.72, with a median of 11.43.
These are just a handful of the figures considered in Target'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 TGT is an impressive value stock right now.