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Should Value Investors Consider Buckle (BKE) Stock Now?
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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 The Buckle, Inc. (BKE - Free Report) 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, Buckle has a trailing twelve months PE ratio of 13.8, 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 20.5. If we focus on the long-term PE trend, Buckle’s current PE level puts it slightly above its midpoint over the past five years.
Further, the stock’s PE also compares favorably with the industry’s trailing twelve months PE ratio, which stands at 18.3. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
However, we should point out that Buckle has a forward PE ratio (price relative to this year’s earnings) of 14.0, so we might say that the forward earnings estimates indicate that the company’s share price will likely appreciate in the near future.
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, Buckle has a P/S ratio of about 1.4. This is lower than the S&P 500 average, which comes in at 3.4 right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past few years.
As we can see, the stock is trading at its median value for the time period from a P/S metric. This does not provide us with a conclusive direction as to the relative valuation of the stock in comparison to its historical trend.
Broad Value Outlook
In aggregate, Buckle currently has a Zacks Value Style Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Buckle a solid choice for value investors.
What About the Stock Overall?
Though Buckle 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 B and a Momentum score of A. This gives BKE a Zacks VGM score—or its overarching fundamental grade—of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current fiscal quarter as well as the fiscal full year has seen one estimate go higher in the past sixty days compared to none lower.
As a result, the current fiscal quarter consensus estimate has risen by 30.4% in the past two months, while the fiscal full year estimate has increased 5.6%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
This bullish trend is why the stock has a Zacks Rank #2 (Buy) and why we are looking for outperformance from the company in the near term.
Bottom Line
Buckle is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. With a formidable industry rank (among the Top 24%) and strong Zacks Rank, Buckle looks like a strong value contender. In fact, over the past one year, the industry has clearly outperformed the broader market, as you can see below:
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.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Should Value Investors Consider Buckle (BKE) Stock Now?
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?
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/bke1.jpg)
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/bke2.jpg)
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/bke3.jpg)
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/bke4.jpg)
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 The Buckle, Inc. (BKE - Free Report) 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, Buckle has a trailing twelve months PE ratio of 13.8, 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 20.5. If we focus on the long-term PE trend, Buckle’s current PE level puts it slightly above its midpoint over the past five years.
Further, the stock’s PE also compares favorably with the industry’s trailing twelve months PE ratio, which stands at 18.3. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
However, we should point out that Buckle has a forward PE ratio (price relative to this year’s earnings) of 14.0, so we might say that the forward earnings estimates indicate that the company’s share price will likely appreciate in the near future.
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, Buckle has a P/S ratio of about 1.4. This is lower than the S&P 500 average, which comes in at 3.4 right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past few years.
As we can see, the stock is trading at its median value for the time period from a P/S metric. This does not provide us with a conclusive direction as to the relative valuation of the stock in comparison to its historical trend.
Broad Value Outlook
In aggregate, Buckle currently has a Zacks Value Style Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Buckle a solid choice for value investors.
What About the Stock Overall?
Though Buckle 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 B and a Momentum score of A. This gives BKE a Zacks VGM score—or its overarching fundamental grade—of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current fiscal quarter as well as the fiscal full year has seen one estimate go higher in the past sixty days compared to none lower.
As a result, the current fiscal quarter consensus estimate has risen by 30.4% in the past two months, while the fiscal full year estimate has increased 5.6%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Buckle, Inc. (The) Price and Consensus
Buckle, Inc. (The) Price and Consensus | Buckle, Inc. (The) Quote
This bullish trend is why the stock has a Zacks Rank #2 (Buy) and why we are looking for outperformance from the company in the near term.
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/bke6.jpg)
Bottom Line
Buckle is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. With a formidable industry rank (among the Top 24%) and strong Zacks Rank, Buckle looks like a strong value contender. In fact, over the past one year, the industry has clearly outperformed the broader market, as you can see below:
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.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>