Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?

BKE TPR

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, 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

The Buckle (BKE - Free Report) is a stock many investors are watching right now. 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 6.28, which compares to its industry's average of 10.64. Over the past 52 weeks, BKE's Forward P/E has been as high as 16.42 and as low as 6.28, with a median of 10.50.

Finally, investors should note that BKE has a P/CF ratio of 5.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BKE's P/CF compares to its industry's average P/CF of 11.68. Over the past 52 weeks, BKE's P/CF has been as high as 13.70 and as low as 5.76, with a median of 8.65.

If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Tapestry (TPR - Free Report) . TPR is a # 2 (Buy) stock with a Value score of A.

Tapestry is currently trading with a Forward P/E ratio of 9.43 while its PEG ratio sits at 0.94. Both of the company's metrics compare favorably to its industry's average P/E of 10.64 and average PEG ratio of 0.49.

TPR's price-to-earnings ratio has been as high as 17.24 and as low as 8.20, with a median of 11.95, while its PEG ratio has been as high as 1.72 and as low as 0.66, with a median of 1.01, all within the past year.

Tapestry also has a P/B ratio of 3.35 compared to its industry's price-to-book ratio of 3.38. Over the past year, its P/B ratio has been as high as 4.54, as low as 2.90, with a median of 3.60.

These figures are just a handful of the metrics value investors tend to look at, but they help show that The Buckle and Tapestry are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BKE and TPR feels like a great value stock at the moment.

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