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Is Tapestry (TPR) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Tapestry (TPR - Free Report) . TPR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.43. This compares to its industry's average Forward P/E of 14.56. TPR's Forward P/E has been as high as 17.24 and as low as 9.75, with a median of 13.69, all within the past year.

We should also highlight that TPR has a P/B ratio of 3.35. The P/B is a method of comparing a stock's market value to 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 5.25. Within the past 52 weeks, TPR's P/B has been as high as 4.54 and as low as 2.08, with a median of 3.53.

Value investors will likely look at more than just these metrics, but the above data helps show that Tapestry is likely undervalued currently. And when considering the strength of its earnings outlook, TPR sticks out at as one of the market's strongest value stocks.


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