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Is XCel Brands (XELB) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is XCel Brands (XELB - Free Report) . XELB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.92 right now. For comparison, its industry sports an average P/E of 15.68. Over the last 12 months, XELB's Forward P/E has been as high as 12.79 and as low as 6.74, with a median of 9.34.

XELB is also sporting a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. XELB's PEG compares to its industry's average PEG of 1.40. Over the past 52 weeks, XELB's PEG has been as high as 1.22 and as low as 0.69, with a median of 0.91.

Finally, investors should note that XELB has a P/CF ratio of 9.27. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.79. Over the past 52 weeks, XELB's P/CF has been as high as 18.53 and as low as 8.58, with a median of 11.82.

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


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