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Are These Consumer Discretionary Stocks 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
One stock to keep an eye on is Delta Apparel (DLA - Free Report) . DLA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.35, which compares to its industry's average of 18.10. Over the past year, DLA's Forward P/E has been as high as 17.09 and as low as 8.22, with a median of 13.47.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DLA has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.82.
Investors could also keep in mind Duluth Holdings (DLTH - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Duluth Holdings has a P/B ratio of 2 while its industry's price-to-book ratio sits at 9.76. For DLTH, this valuation metric has been as high as 3.18, as low as 1.83, with a median of 2.29 over the past year.
These are only a few of the key metrics included in Delta Apparel and Duluth Holdings strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DLA and DLTH look like an impressive value stock at the moment.
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Are These Consumer Discretionary Stocks 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
One stock to keep an eye on is Delta Apparel (DLA - Free Report) . DLA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.35, which compares to its industry's average of 18.10. Over the past year, DLA's Forward P/E has been as high as 17.09 and as low as 8.22, with a median of 13.47.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DLA has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.82.
Investors could also keep in mind Duluth Holdings (DLTH - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Duluth Holdings has a P/B ratio of 2 while its industry's price-to-book ratio sits at 9.76. For DLTH, this valuation metric has been as high as 3.18, as low as 1.83, with a median of 2.29 over the past year.
These are only a few of the key metrics included in Delta Apparel and Duluth Holdings strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DLA and DLTH look like an impressive value stock at the moment.