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Are Investors Undervaluing Buckle (BKE) 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, 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.

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.

One stock to keep an eye on is Buckle (BKE - Free Report) . BKE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.44, which compares to its industry's average of 12.63. Over the past year, BKE's Forward P/E has been as high as 16.31 and as low as 10.39, with a median of 13.03.

Another valuation metric that we should highlight is BKE's P/B ratio of 2.08. The P/B is a method of comparing a stock's market value to 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 3.75. BKE's P/B has been as high as 3.47 and as low as 2.07, with a median of 2.74, over the past year.

Finally, our model also underscores that BKE has a P/CF ratio of 6.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BKE's current P/CF looks attractive when compared to its industry's average P/CF of 7.94. Within the past 12 months, BKE's P/CF has been as high as 10.92 and as low as 6.59, with a median of 8.55.

These are just a handful of the figures considered in Buckle's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BKE is an impressive value stock right now.


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