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Are Investors Undervaluing Best Buy (BBY) Right Now?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 has a Forward P/E ratio of 12.74. This compares to its industry's average Forward P/E of 23.67. BBY's Forward P/E has been as high as 18.83 and as low as 12.43, with a median of 15.26, all within the past year.
Investors will also notice that BBY has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BBY's industry currently sports an average PEG of 2.41. 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 1.97.
We should also highlight that BBY has a P/B ratio of 6.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 11.14. Within the past 52 weeks, BBY's P/B has been as high as 8.28 and as low as 5.55, with a median of 6.92.
Finally, we should also recognize that BBY has a P/CF ratio of 9.23. 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 10.98. 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 are just a handful of the figures considered in Best Buy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BBY is an impressive value stock right now.
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Are Investors Undervaluing Best Buy (BBY) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 has a Forward P/E ratio of 12.74. This compares to its industry's average Forward P/E of 23.67. BBY's Forward P/E has been as high as 18.83 and as low as 12.43, with a median of 15.26, all within the past year.
Investors will also notice that BBY has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BBY's industry currently sports an average PEG of 2.41. 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 1.97.
We should also highlight that BBY has a P/B ratio of 6.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 11.14. Within the past 52 weeks, BBY's P/B has been as high as 8.28 and as low as 5.55, with a median of 6.92.
Finally, we should also recognize that BBY has a P/CF ratio of 9.23. 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 10.98. 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 are just a handful of the figures considered in Best Buy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BBY is an impressive value stock right now.