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Should Value Investors Buy Burlington Stores (BURL) Stock?

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Burlington Stores (BURL - Free Report) . BURL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors will also notice that BURL has a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BURL's industry currently sports an average PEG of 2.93. BURL's PEG has been as high as 1.31 and as low as 0.51, with a median of 1.01, all within the past year.

Finally, our model also underscores that BURL has a P/CF ratio of 22.99. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BURL's P/CF compares to its industry's average P/CF of 28.64. Over the past 52 weeks, BURL's P/CF has been as high as 23.18 and as low as 13.05, with a median of 19.66.

These are just a handful of the figures considered in Burlington Stores'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 BURL is an impressive value stock right now.


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