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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.
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 company value investors might notice is Kohl's (KSS - Free Report) . KSS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Another notable valuation metric for KSS is its P/B ratio of 1.72. The P/B ratio pits a stock's market value against 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 2.99. Within the past 52 weeks, KSS's P/B has been as high as 1.96 and as low as 0.60, with a median of 1.53.
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. KSS has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.62.
Finally, investors should note that KSS has a P/CF ratio of 5.61. 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 11.85. Within the past 12 months, KSS's P/CF has been as high as 13.82 and as low as 3.57, with a median of 6.98.
Value investors will likely look at more than just these metrics, but the above data helps show that Kohl's is likely undervalued currently. And when considering the strength of its earnings outlook, KSS sticks out at as one of the market's strongest value stocks.
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Is Kohl's (KSS) a Great Value Stock 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.
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 company value investors might notice is Kohl's (KSS - Free Report) . KSS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Another notable valuation metric for KSS is its P/B ratio of 1.72. The P/B ratio pits a stock's market value against 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 2.99. Within the past 52 weeks, KSS's P/B has been as high as 1.96 and as low as 0.60, with a median of 1.53.
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. KSS has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.62.
Finally, investors should note that KSS has a P/CF ratio of 5.61. 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 11.85. Within the past 12 months, KSS's P/CF has been as high as 13.82 and as low as 3.57, with a median of 6.98.
Value investors will likely look at more than just these metrics, but the above data helps show that Kohl's is likely undervalued currently. And when considering the strength of its earnings outlook, KSS sticks out at as one of the market's strongest value stocks.