We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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 company to watch right now is Nordstrom (JWN - Free Report) . JWN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.66, while its industry has an average P/E of 14.80. Over the last 12 months, JWN's Forward P/E has been as high as 18.30 and as low as 10.66, with a median of 14.27.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JWN has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.57.
Finally, we should also recognize that JWN has a P/CF ratio of 5.89. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. JWN's current P/CF looks attractive when compared to its industry's average P/CF of 7.90. Within the past 12 months, JWN's P/CF has been as high as 10.75 and as low as 5.89, with a median of 7.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Nordstrom is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JWN feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Nordstrom (JWN) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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 company to watch right now is Nordstrom (JWN - Free Report) . JWN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.66, while its industry has an average P/E of 14.80. Over the last 12 months, JWN's Forward P/E has been as high as 18.30 and as low as 10.66, with a median of 14.27.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JWN has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.57.
Finally, we should also recognize that JWN has a P/CF ratio of 5.89. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. JWN's current P/CF looks attractive when compared to its industry's average P/CF of 7.90. Within the past 12 months, JWN's P/CF has been as high as 10.75 and as low as 5.89, with a median of 7.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Nordstrom is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JWN feels like a great value stock at the moment.