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 PriceSmart (PSMT) Right Now?
Read MoreHide Full Article
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.
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 PriceSmart (PSMT - Free Report) . PSMT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.99, while its industry has an average P/E of 31.01. Over the last 12 months, PSMT's Forward P/E has been as high as 17.56 and as low as 15.08, with a median of 16.33.
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. PSMT has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.73.
Finally, investors will want to recognize that PSMT has a P/CF ratio of 13.12. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.80. PSMT's P/CF has been as high as 13.49 and as low as 10.59, with a median of 12.35, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that PriceSmart is likely undervalued currently. And when considering the strength of its earnings outlook, PSMT sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing PriceSmart (PSMT) 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.
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 PriceSmart (PSMT - Free Report) . PSMT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.99, while its industry has an average P/E of 31.01. Over the last 12 months, PSMT's Forward P/E has been as high as 17.56 and as low as 15.08, with a median of 16.33.
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. PSMT has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.73.
Finally, investors will want to recognize that PSMT has a P/CF ratio of 13.12. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.80. PSMT's P/CF has been as high as 13.49 and as low as 10.59, with a median of 12.35, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that PriceSmart is likely undervalued currently. And when considering the strength of its earnings outlook, PSMT sticks out at as one of the market's strongest value stocks.