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Should Value Investors Buy J.Jill (JILL) Stock?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 J.Jill (JILL - Free Report) . JILL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.16 right now. For comparison, its industry sports an average P/E of 15.61. JILL's Forward P/E has been as high as 12.61 and as low as 5.16, with a median of 10.05, all within the past year.

We also note that JILL holds a PEG ratio of 0.94. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JILL's industry has an average PEG of 1.44 right now. Over the last 12 months, JILL's PEG has been as high as 1.09 and as low as 0.27, with a median of 0.56.

Another notable valuation metric for JILL is its P/B ratio of 1.89. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.64. Within the past 52 weeks, JILL's P/B has been as high as 3.58 and as low as 1.04, with a median of 1.99.

Finally, investors should note that JILL has a P/CF ratio of 3.71. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.79. Over the past 52 weeks, JILL's P/CF has been as high as 7.59 and as low as 1.99, with a median of 3.90.

These figures are just a handful of the metrics value investors tend to look at, but they help show that J.Jill is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JILL feels like a great value stock at the moment.


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