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Is Buckle (BKE) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Buckle (BKE - Free Report) . BKE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.71, which compares to its industry's average of 14.73. BKE's Forward P/E has been as high as 16.31 and as low as 10.20, with a median of 12.32, all within the past year.

We should also highlight that BKE has a P/B ratio of 2.24. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.53. Over the past year, BKE's P/B has been as high as 3.47 and as low as 2.06, with a median of 2.52.

Finally, we should also recognize that BKE has a P/CF ratio of 6.91. 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. BKE's P/CF compares to its industry's average P/CF of 7.85. Over the past 52 weeks, BKE's P/CF has been as high as 10.92 and as low as 6.52, with a median of 7.95.

Value investors will likely look at more than just these metrics, but the above data helps show that Buckle is likely undervalued currently. And when considering the strength of its earnings outlook, BKE sticks out at as one of the market's strongest value stocks.


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