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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Macy's (M - Free Report) is a stock many investors are watching right now. M is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.68, while its industry has an average P/E of 10.06. Over the past 52 weeks, M's Forward P/E has been as high as 10.41 and as low as 5.30, with a median of 7.61.
Investors will also notice that M has a PEG ratio of 0.76. 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. M's PEG compares to its industry's average PEG of 1.20. Over the past 52 weeks, M's PEG has been as high as 1.22 and as low as 0.71, with a median of 0.93.
Investors should also recognize that M has a P/B ratio of 0.75. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.29. Over the past 12 months, M's P/B has been as high as 2.06 and as low as 0.70, with a median of 1.15.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. M has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.23.
Finally, we should also recognize that M has a P/CF ratio of 2.41. 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 4.20. M's P/CF has been as high as 4.47 and as low as 2.25, with a median of 3.50, all within the past year.
These are only a few of the key metrics included in Macy's's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, M looks like an impressive value stock at the moment.
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Is Macy's (M) Stock Undervalued Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Macy's (M - Free Report) is a stock many investors are watching right now. M is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.68, while its industry has an average P/E of 10.06. Over the past 52 weeks, M's Forward P/E has been as high as 10.41 and as low as 5.30, with a median of 7.61.
Investors will also notice that M has a PEG ratio of 0.76. 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. M's PEG compares to its industry's average PEG of 1.20. Over the past 52 weeks, M's PEG has been as high as 1.22 and as low as 0.71, with a median of 0.93.
Investors should also recognize that M has a P/B ratio of 0.75. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.29. Over the past 12 months, M's P/B has been as high as 2.06 and as low as 0.70, with a median of 1.15.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. M has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.23.
Finally, we should also recognize that M has a P/CF ratio of 2.41. 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 4.20. M's P/CF has been as high as 4.47 and as low as 2.25, with a median of 3.50, all within the past year.
These are only a few of the key metrics included in Macy's's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, M looks like an impressive value stock at the moment.