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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Macy's (M - Free Report) . M is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.75, while its industry has an average P/E of 12.83. M's Forward P/E has been as high as 11.55 and as low as 6.46, with a median of 8.97, all within the past year.
Investors will also notice that M has a PEG ratio of 1.15. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS 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 notable valuation metric for M is its P/B ratio of 1.93. Investors use the P/B ratio to look at a stock's market value versus 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 2.33. Over the past 12 months, M's P/B has been as high as 2.21 and as low as 1.26, with a median of 1.62.
Finally, investors should note that M has a P/CF ratio of 4.39. 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. M's P/CF compares 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.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Macy's is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, M feels like a great value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Macy's (M - Free Report) . M is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.75, while its industry has an average P/E of 12.83. M's Forward P/E has been as high as 11.55 and as low as 6.46, with a median of 8.97, all within the past year.
Investors will also notice that M has a PEG ratio of 1.15. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS 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 notable valuation metric for M is its P/B ratio of 1.93. Investors use the P/B ratio to look at a stock's market value versus 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 2.33. Over the past 12 months, M's P/B has been as high as 2.21 and as low as 1.26, with a median of 1.62.
Finally, investors should note that M has a P/CF ratio of 4.39. 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. M's P/CF compares 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.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Macy's is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, M feels like a great value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on M - FREE