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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.
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.
Lowe's (LOW - Free Report) is a stock many investors are watching right now. LOW 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 19.20 right now. For comparison, its industry sports an average P/E of 20.71. Over the past 52 weeks, LOW's Forward P/E has been as high as 21.38 and as low as 9.70, with a median of 17.56.
We also note that LOW holds a PEG ratio of 1.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LOW's industry has an average PEG of 1.60 right now. Within the past year, LOW's PEG has been as high as 1.52 and as low as 0.68, with a median of 1.26.
Another valuation metric that we should highlight is LOW's P/B ratio of 57.24. Investors use the P/B ratio to look at a stock's market value versus 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 107.33. Over the past year, LOW's P/B has been as high as 58.45 and as low as 23.30, with a median of 35.69.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lowe's is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LOW feels like a great value stock at the moment.
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Is Lowe's (LOW) Stock Undervalued 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.
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.
Lowe's (LOW - Free Report) is a stock many investors are watching right now. LOW 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 19.20 right now. For comparison, its industry sports an average P/E of 20.71. Over the past 52 weeks, LOW's Forward P/E has been as high as 21.38 and as low as 9.70, with a median of 17.56.
We also note that LOW holds a PEG ratio of 1.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LOW's industry has an average PEG of 1.60 right now. Within the past year, LOW's PEG has been as high as 1.52 and as low as 0.68, with a median of 1.26.
Another valuation metric that we should highlight is LOW's P/B ratio of 57.24. Investors use the P/B ratio to look at a stock's market value versus 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 107.33. Over the past year, LOW's P/B has been as high as 58.45 and as low as 23.30, with a median of 35.69.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lowe's is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LOW feels like a great value stock at the moment.