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Should Value Investors Buy Seven and I Holdings Co. (SVNDY) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

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 Seven and I Holdings Co. (SVNDY - Free Report) . SVNDY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.89, while its industry has an average P/E of 16.59. Over the past 52 weeks, SVNDY's Forward P/E has been as high as 13.48 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 0.47. This compares to its industry's average P/S of 0.71.

Finally, our model also underscores that SVNDY has a P/CF ratio of 7.51. 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 current P/CF looks attractive when compared to its industry's average P/CF of 19.61. Over the past 52 weeks, SVNDY's P/CF has been as high as 7.83 and as low as 5.65, with a median of 6.50.

Value investors will likely look at more than just these metrics, but the above data helps show that Seven and I Holdings Co. Is likely undervalued currently. And when considering the strength of its earnings outlook, SVNDY sticks out at as one of the market's strongest value stocks.


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