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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.75. This compares to its industry's average Forward P/E of 12.83. Over the past 52 weeks, M's Forward P/E has been as high as 11.55 and as low as 6.46, with a median of 8.97.
We also note that M holds a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. M's PEG compares to its industry's average PEG of 1.61. Over the past 52 weeks, M's PEG has been as high as 1.36 and as low as 0.76, with a median of 1.06.
Another valuation metric that we should highlight is M's P/B ratio of 1.93. 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. M's current P/B looks attractive when compared to its industry's average P/B of 2.33. M's P/B has been as high as 2.21 and as low as 1.26, with a median of 1.62, over the past year.
Finally, we should also recognize that M has a P/CF ratio of 4.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. M's current P/CF looks attractive when compared to its industry's average P/CF of 5.72. Within the past 12 months, M's P/CF has been as high as 5.03 and as low as 2.89, with a median of 3.94.
Value investors will likely look at more than just these metrics, but the above data helps show that Macy's is likely undervalued currently. And when considering the strength of its earnings outlook, M sticks out at as one of the market's strongest value stocks.
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Is Macy's (M) a Great Value Stock 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.75. This compares to its industry's average Forward P/E of 12.83. Over the past 52 weeks, M's Forward P/E has been as high as 11.55 and as low as 6.46, with a median of 8.97.
We also note that M holds a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. M's PEG compares to its industry's average PEG of 1.61. Over the past 52 weeks, M's PEG has been as high as 1.36 and as low as 0.76, with a median of 1.06.
Another valuation metric that we should highlight is M's P/B ratio of 1.93. 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. M's current P/B looks attractive when compared to its industry's average P/B of 2.33. M's P/B has been as high as 2.21 and as low as 1.26, with a median of 1.62, over the past year.
Finally, we should also recognize that M has a P/CF ratio of 4.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. M's current P/CF looks attractive when compared to its industry's average P/CF of 5.72. Within the past 12 months, M's P/CF has been as high as 5.03 and as low as 2.89, with a median of 3.94.
Value investors will likely look at more than just these metrics, but the above data helps show that Macy's is likely undervalued currently. And when considering the strength of its earnings outlook, M sticks out at as one of the market's strongest value stocks.