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Is Buckle (BKE) Stock Undervalued 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Buckle (BKE - Free Report) . BKE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.67, while its industry has an average P/E of 13.21. BKE's Forward P/E has been as high as 15.66 and as low as 9.31, with a median of 11.82, all within the past year.

Another notable valuation metric for BKE is its P/B ratio of 2.92. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.35. BKE's P/B has been as high as 3.35 and as low as 1.86, with a median of 2.42, over the past year.

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


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