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Are Investors Undervaluing Seven and I Holdings Co. (SVNDY) Right Now?

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

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.

Seven and I Holdings Co. (SVNDY - Free Report) is a stock many investors are watching right now. SVNDY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.89, which compares to its industry's average of 16.10. Over the past year, SVNDY's Forward P/E has been as high as 13.49 and as low as 9.88, with a median of 11.76.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SVNDY has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.7.

Finally, investors should note that SVNDY has a P/CF ratio of 7.47. 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. SVNDY's P/CF compares to its industry's average P/CF of 18.98. Over the past year, SVNDY's P/CF has been as high as 7.57 and as low as 5.65, with a median of 6.50.

These are just a handful of the figures considered in Seven and I Holdings Co.'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 SVNDY is an impressive value stock right now.


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