Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Tailored Brands, Inc. stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Tailored Brands has a trailing twelve months PE ratio of 6.1, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 20.2. If we focus on the long-term PE trend, Tailored Brands’ current PE level puts it above its below over the past five years, with the number having fallen rapidly over the past few months.
Further, the stock’s PE also compares favorably with the Zacks classified Textile - Apparel industry’s trailing twelve months PE ratio, which stands at 16.9. At the very least, this indicates that the stock is hugely undervalued right now, compared to its peers.
We should also point out that Tailored Brands has a forward PE ratio (price relative to this year’s earnings) of 6.1, so it is fair to say that a slightly more value-oriented path may be ahead for Tailored Brands stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Tailored Brands has a P/S ratio of about 0.2. This is fairly lower than the S&P 500 average, which comes in at 3.1 right now. Also, as we can see in the chart below, this is tad below the highs for this stock in particular over the past few years.
If anything, TLRD is in the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, Tailored Brands currently has a Zacks Value Style Score of ‘A’, putting it into the top 20% of all stocks we cover from this look. This makes Tailored Brands a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the PEG ratio for Tailored Brands is just 0.4, a level that is lower than the industry average of 1.4. The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate. Additionally, its P/CF ratio (another great indicator of value) comes in at 2.4, which is far better than the industry average of 6.4. Clearly, TLRD is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Tailored Brands might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘D’ and a Momentum score of ‘F’. This gives TLRD a Zacks VGM score—or its overarching fundamental grade—of ‘D’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been mixed. The current quarter has seen no estimates higher or lower in the past sixty days while the full year estimate has seen two up and none down in the same time period.
As a result the current quarter consensus estimate has remained steady at 20 cents, while the full year estimate has increased by 4.8%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
This mixed trend indicates that while the stock’s growth story is intact over the medium term, analysts have some apprehensions about the stock in the immediate future.
Also consider the fact that the company boasts a Zacks Rank #2 (Buy), which indicates robust fundamentals and expectations of outperformance in the near term. Thus, we can say that while investors may expect slight short-term pain, JMP Group remains a formidable value proposition, with strong supporting growth prospects.
Bottom Line
Tailored Brands is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front.
Boasting a good industry rank (top 35% out of more than 250 industries) and a solid Zacks Rank, the company deserves attention right now. So, it might pay for value investors to delve deeper into the company’s prospects, as fundamentals indicate that this stock could be a compelling pick.
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Is Tailored Brands a Great Stock for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Tailored Brands, Inc. stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Tailored Brands has a trailing twelve months PE ratio of 6.1, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 20.2. If we focus on the long-term PE trend, Tailored Brands’ current PE level puts it above its below over the past five years, with the number having fallen rapidly over the past few months.
Further, the stock’s PE also compares favorably with the Zacks classified Textile - Apparel industry’s trailing twelve months PE ratio, which stands at 16.9. At the very least, this indicates that the stock is hugely undervalued right now, compared to its peers.
We should also point out that Tailored Brands has a forward PE ratio (price relative to this year’s earnings) of 6.1, so it is fair to say that a slightly more value-oriented path may be ahead for Tailored Brands stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Tailored Brands has a P/S ratio of about 0.2. This is fairly lower than the S&P 500 average, which comes in at 3.1 right now. Also, as we can see in the chart below, this is tad below the highs for this stock in particular over the past few years.
If anything, TLRD is in the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, Tailored Brands currently has a Zacks Value Style Score of ‘A’, putting it into the top 20% of all stocks we cover from this look. This makes Tailored Brands a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the PEG ratio for Tailored Brands is just 0.4, a level that is lower than the industry average of 1.4. The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate. Additionally, its P/CF ratio (another great indicator of value) comes in at 2.4, which is far better than the industry average of 6.4. Clearly, TLRD is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Tailored Brands might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘D’ and a Momentum score of ‘F’. This gives TLRD a Zacks VGM score—or its overarching fundamental grade—of ‘D’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been mixed. The current quarter has seen no estimates higher or lower in the past sixty days while the full year estimate has seen two up and none down in the same time period.
As a result the current quarter consensus estimate has remained steady at 20 cents, while the full year estimate has increased by 4.8%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Tailored Brands, Inc. Price and Consensus
Tailored Brands, Inc. Price and Consensus | Tailored Brands, Inc. Quote
This mixed trend indicates that while the stock’s growth story is intact over the medium term, analysts have some apprehensions about the stock in the immediate future.
Also consider the fact that the company boasts a Zacks Rank #2 (Buy), which indicates robust fundamentals and expectations of outperformance in the near term. Thus, we can say that while investors may expect slight short-term pain, JMP Group remains a formidable value proposition, with strong supporting growth prospects.
Bottom Line
Tailored Brands is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front.
Boasting a good industry rank (top 35% out of more than 250 industries) and a solid Zacks Rank, the company deserves attention right now. So, it might pay for value investors to delve deeper into the company’s prospects, as fundamentals indicate that this stock could be a compelling pick.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>