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Should Value Investors Buy Land's End (LE) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company to watch right now is Land's End (LE - Free Report) . LE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 33.18. This compares to its industry's average Forward P/E of 33.56. Over the last 12 months, LE's Forward P/E has been as high as 90.82 and as low as -67.60, with a median of 58.55.

Finally, our model also underscores that LE has a P/CF ratio of 38.44. 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 44.97. Over the past 52 weeks, LE's P/CF has been as high as 47.09 and as low as 8.39, with a median of 18.39.

These are only a few of the key metrics included in Land's End's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LE looks like an impressive value stock at the moment.


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