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Is 1-800-Flowers.com (FLWS) a Great Value Stock Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

1-800-Flowers.com (FLWS - Free Report) is a stock many investors are watching right now. FLWS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Another valuation metric that we should highlight is FLWS's P/B ratio of 2.10. 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 attractive against its industry's average P/B of 2.58. FLWS's P/B has been as high as 3.92 and as low as 1.80, with a median of 2.82, over the past year.

Finally, we should also recognize that FLWS has a P/CF ratio of 11.90. 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. FLWS's P/CF compares to its industry's average P/CF of 14.89. Within the past 12 months, FLWS's P/CF has been as high as 20.58 and as low as 10.19, with a median of 14.82.

These figures are just a handful of the metrics value investors tend to look at, but they help show that 1-800-Flowers.com is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLWS feels like a great value stock at the moment.


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