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.
Are Investors Undervaluing L Brands (LB) Right Now?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is L Brands (LB - Free Report) . LB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.10 right now. For comparison, its industry sports an average P/E of 13.07. Over the past 52 weeks, LB's Forward P/E has been as high as 14.45 and as low as 8.95, with a median of 11.19.
Investors should also note that LB holds a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LB's industry currently sports an average PEG of 1.27. LB's PEG has been as high as 1.26 and as low as 0.81, with a median of 0.99, all within the past year.
Finally, investors will want to recognize that LB has a P/CF ratio of 5.84. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.84. LB's P/CF has been as high as 7.76 and as low as 5.05, with a median of 6.14, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that L Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LB 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
Are Investors Undervaluing L Brands (LB) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is L Brands (LB - Free Report) . LB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.10 right now. For comparison, its industry sports an average P/E of 13.07. Over the past 52 weeks, LB's Forward P/E has been as high as 14.45 and as low as 8.95, with a median of 11.19.
Investors should also note that LB holds a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LB's industry currently sports an average PEG of 1.27. LB's PEG has been as high as 1.26 and as low as 0.81, with a median of 0.99, all within the past year.
Finally, investors will want to recognize that LB has a P/CF ratio of 5.84. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.84. LB's P/CF has been as high as 7.76 and as low as 5.05, with a median of 6.14, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that L Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LB feels like a great value stock at the moment.