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Should Value Investors Buy Signet (SIG) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Signet (SIG - Free Report) . SIG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.88. This compares to its industry's average Forward P/E of 15.41. Over the past year, SIG's Forward P/E has been as high as 16.58 and as low as 6.33, with a median of 9.18.

Another notable valuation metric for SIG is its P/B ratio of 2.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SIG's current P/B looks attractive when compared to its industry's average P/B of 3.20. SIG's P/B has been as high as 2.86 and as low as 0.86, with a median of 1.60, over the past year.

Finally, investors will want to recognize that SIG has a P/CF ratio of 7.67. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.69. Over the past 52 weeks, SIG's P/CF has been as high as 8.22 and as low as 3.33, with a median of 5.31.

Value investors will likely look at more than just these metrics, but the above data helps show that Signet is likely undervalued currently. And when considering the strength of its earnings outlook, SIG sticks out at as one of the market's strongest value stocks.


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