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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Best Buy (BBY - Free Report) . BBY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.33, while its industry has an average P/E of 24.62. Over the past 52 weeks, BBY's Forward P/E has been as high as 18.83 and as low as 12.43, with a median of 15.37.
Investors will also notice that BBY has a PEG ratio of 1.61. 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 2.51. 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.
We should also highlight that BBY has a P/B ratio of 6.96. 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 company's current P/B looks solid when compared to its industry's average P/B of 11.75. Over the past year, BBY's P/B has been as high as 8.28 and as low as 5.55, with a median of 6.92.
Finally, our model also underscores that BBY has a P/CF ratio of 9.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.59. Over the past year, BBY's P/CF has been as high as 12.91 and as low as 8.96, with a median of 11.33.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Best Buy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBY feels like a great value stock at the moment.
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Is Best Buy (BBY) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Best Buy (BBY - Free Report) . BBY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.33, while its industry has an average P/E of 24.62. Over the past 52 weeks, BBY's Forward P/E has been as high as 18.83 and as low as 12.43, with a median of 15.37.
Investors will also notice that BBY has a PEG ratio of 1.61. 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 2.51. 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.
We should also highlight that BBY has a P/B ratio of 6.96. 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 company's current P/B looks solid when compared to its industry's average P/B of 11.75. Over the past year, BBY's P/B has been as high as 8.28 and as low as 5.55, with a median of 6.92.
Finally, our model also underscores that BBY has a P/CF ratio of 9.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.59. Over the past year, BBY's P/CF has been as high as 12.91 and as low as 8.96, with a median of 11.33.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Best Buy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBY feels like a great value stock at the moment.