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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company value investors might notice is Best Buy (BBY - Free Report) . BBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.65, while its industry has an average P/E of 24.25. Over the last 12 months, BBY's Forward P/E has been as high as 18.83 and as low as 12.65, with a median of 15.45.
We also note that BBY holds a PEG ratio of 1.53. 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. BBY's PEG compares to its industry's average PEG of 2.47. Over the past 52 weeks, BBY's PEG has been as high as 2.48 and as low as 1.26, with a median of 2.03.
We should also highlight that BBY has a P/B ratio of 6.59. The P/B ratio pits a stock's market value against 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 10.08. Over the past 12 months, BBY's P/B has been as high as 8.28 and as low as 5.55, with a median of 6.91.
Finally, investors should note that BBY has a P/CF ratio of 9.12. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.56. Over the past 52 weeks, BBY's P/CF has been as high as 12.91 and as low as 9.12, with a median of 11.33.
Value investors will likely look at more than just these metrics, but the above data helps show that Best Buy is likely undervalued currently. And when considering the strength of its earnings outlook, BBY sticks out at as one of the market's strongest value stocks.
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Is Best Buy (BBY) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company value investors might notice is Best Buy (BBY - Free Report) . BBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.65, while its industry has an average P/E of 24.25. Over the last 12 months, BBY's Forward P/E has been as high as 18.83 and as low as 12.65, with a median of 15.45.
We also note that BBY holds a PEG ratio of 1.53. 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. BBY's PEG compares to its industry's average PEG of 2.47. Over the past 52 weeks, BBY's PEG has been as high as 2.48 and as low as 1.26, with a median of 2.03.
We should also highlight that BBY has a P/B ratio of 6.59. The P/B ratio pits a stock's market value against 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 10.08. Over the past 12 months, BBY's P/B has been as high as 8.28 and as low as 5.55, with a median of 6.91.
Finally, investors should note that BBY has a P/CF ratio of 9.12. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.56. Over the past 52 weeks, BBY's P/CF has been as high as 12.91 and as low as 9.12, with a median of 11.33.
Value investors will likely look at more than just these metrics, but the above data helps show that Best Buy is likely undervalued currently. And when considering the strength of its earnings outlook, BBY sticks out at as one of the market's strongest value stocks.