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Is Sally Beauty (SBH) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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.
Sally Beauty (SBH - Free Report) is a stock many investors are watching right now. SBH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.22, while its industry has an average P/E of 16.68. Over the last 12 months, SBH's Forward P/E has been as high as 13.72 and as low as 4.14, with a median of 7.79.
Investors should also note that SBH holds a PEG ratio of 0.30. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SBH's industry has an average PEG of 0.63 right now. Over the last 12 months, SBH's PEG has been as high as 1.97 and as low as 0.19, with a median of 1.07.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SBH has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.8.
Finally, investors will want to recognize that SBH has a P/CF ratio of 10.13. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.62. Within the past 12 months, SBH's P/CF has been as high as 11.45 and as low as 4.22, with a median of 7.23.
These are just a handful of the figures considered in Sally Beauty'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 SBH is an impressive value stock right now.
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Is Sally Beauty (SBH) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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.
Sally Beauty (SBH - Free Report) is a stock many investors are watching right now. SBH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.22, while its industry has an average P/E of 16.68. Over the last 12 months, SBH's Forward P/E has been as high as 13.72 and as low as 4.14, with a median of 7.79.
Investors should also note that SBH holds a PEG ratio of 0.30. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SBH's industry has an average PEG of 0.63 right now. Over the last 12 months, SBH's PEG has been as high as 1.97 and as low as 0.19, with a median of 1.07.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SBH has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.8.
Finally, investors will want to recognize that SBH has a P/CF ratio of 10.13. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.62. Within the past 12 months, SBH's P/CF has been as high as 11.45 and as low as 4.22, with a median of 7.23.
These are just a handful of the figures considered in Sally Beauty'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 SBH is an impressive value stock right now.