Back to top

Image: Bigstock

Looking for Value? Why It Might Be Time to Try Barnes & Noble (BKS)

Read MoreHide Full Article

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Barnes & Noble, Inc. .

Barnes & Noble in Focus

BKS may be an interesting play thanks to its forward PE of 13.39, its P/S ratio of 0.14, and its decent dividend yield of 33.3%. These factors suggest that Barnes & Noble is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that BKS has decent revenue metrics to back up its earnings.

But before you think that Barnes & Noble is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 33.3% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.

This estimate strength is actually enough to push BKS to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, Barnes & Noble is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
 

Published in