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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.
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.
Big Lots (BIG - Free Report) is a stock many investors are watching right now. BIG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors will also notice that BIG has a PEG ratio of 1.21. 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. BIG's industry has an average PEG of 2.89 right now. Within the past year, BIG's PEG has been as high as 1.57 and as low as 0.50, with a median of 0.98.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BIG has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.96.
Value investors will likely look at more than just these metrics, but the above data helps show that Big Lots is likely undervalued currently. And when considering the strength of its earnings outlook, BIG sticks out at as one of the market's strongest value stocks.
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Is Big Lots (BIG) Stock Undervalued Right Now?
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.
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.
Big Lots (BIG - Free Report) is a stock many investors are watching right now. BIG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors will also notice that BIG has a PEG ratio of 1.21. 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. BIG's industry has an average PEG of 2.89 right now. Within the past year, BIG's PEG has been as high as 1.57 and as low as 0.50, with a median of 0.98.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BIG has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.96.
Value investors will likely look at more than just these metrics, but the above data helps show that Big Lots is likely undervalued currently. And when considering the strength of its earnings outlook, BIG sticks out at as one of the market's strongest value stocks.