The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is L Brands (LB). LB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.69. This compares to its industry's average Forward P/E of 25.66. Over the past 52 weeks, LB's Forward P/E has been as high as 36.86 and as low as 6.69, with a median of 16.41.
Investors should also note that LB holds a PEG ratio of 1.05. 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. LB's PEG compares to its industry's average PEG of 2.08. LB's PEG has been as high as 2.84 and as low as 0.51, with a median of 1.26, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that L Brands is likely undervalued currently. And when considering the strength of its earnings outlook, LB sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy L Brands (LB) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is L Brands (LB). LB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.69. This compares to its industry's average Forward P/E of 25.66. Over the past 52 weeks, LB's Forward P/E has been as high as 36.86 and as low as 6.69, with a median of 16.41.
Investors should also note that LB holds a PEG ratio of 1.05. 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. LB's PEG compares to its industry's average PEG of 2.08. LB's PEG has been as high as 2.84 and as low as 0.51, with a median of 1.26, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that L Brands is likely undervalued currently. And when considering the strength of its earnings outlook, LB sticks out at as one of the market's strongest value stocks.