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Are These Retail-Wholesale 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.

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

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.

Capri Holdings (CPRI - Free Report) is a stock many investors are watching right now. CPRI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.09. This compares to its industry's average Forward P/E of 13.44. Over the past year, CPRI's Forward P/E has been as high as 32.82 and as low as 9.79, with a median of 13.13.

Investors should also note that CPRI holds a PEG ratio of 0.34. 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. CPRI's PEG compares to its industry's average PEG of 0.73. Over the past 52 weeks, CPRI's PEG has been as high as 6.06 and as low as 0.18, with a median of 0.72.

Investors should also recognize that CPRI has a P/B ratio of 3.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.31. Over the past year, CPRI's P/B has been as high as 4.17 and as low as 2.62, with a median of 3.52.

Investors could also keep in mind Zumiez (ZUMZ - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Additionally, Zumiez has a P/B ratio of 2.07 while its industry's price-to-book ratio sits at 4.31. For ZUMZ, this valuation metric has been as high as 2.36, as low as 1.63, with a median of 2.01 over the past year.

These are just a handful of the figures considered in Capri Holdings and Zumiez'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 CPRI and ZUMZ is an impressive value stock right now.


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