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.
Should Value Investors Buy PriceSmart (PSMT) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is PriceSmart (PSMT - Free Report) . PSMT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 16.44 right now. For comparison, its industry sports an average P/E of 29.61. PSMT's Forward P/E has been as high as 17.56 and as low as 15.08, with a median of 16.38, all within the past year.
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 0.52. This compares to its industry's average P/S of 0.69.
Finally, our model also underscores that PSMT has a P/CF ratio of 12.77. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.63. Over the past 52 weeks, PSMT's P/CF has been as high as 13.52 and as low as 10.59, with a median of 12.35.
Target (TGT - Free Report) may be another strong Retail - Discount Stores stock to add to your shortlist. TGT is a # 2 (Buy) stock with a Value grade of A.
Target is currently trading with a Forward P/E ratio of 14.03 while its PEG ratio sits at 1.23. Both of the company's metrics compare favorably to its industry's average P/E of 29.61 and average PEG ratio of 2.92.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy PriceSmart (PSMT) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is PriceSmart (PSMT - Free Report) . PSMT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 16.44 right now. For comparison, its industry sports an average P/E of 29.61. PSMT's Forward P/E has been as high as 17.56 and as low as 15.08, with a median of 16.38, all within the past year.
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 0.52. This compares to its industry's average P/S of 0.69.
Finally, our model also underscores that PSMT has a P/CF ratio of 12.77. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.63. Over the past 52 weeks, PSMT's P/CF has been as high as 13.52 and as low as 10.59, with a median of 12.35.
Target (TGT - Free Report) may be another strong Retail - Discount Stores stock to add to your shortlist. TGT is a # 2 (Buy) stock with a Value grade of A.
Target is currently trading with a Forward P/E ratio of 14.03 while its PEG ratio sits at 1.23. Both of the company's metrics compare favorably to its industry's average P/E of 29.61 and average PEG ratio of 2.92.