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Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

DICK'S Sporting Goods (DKS - Free Report) is a stock many investors are watching right now. DKS 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 9.94, while its industry has an average P/E of 18.09. Over the past year, DKS's Forward P/E has been as high as 19.19 and as low as 9.08, with a median of 13.30.

Another valuation metric that we should highlight is DKS's P/B ratio of 3.82. 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. DKS's current P/B looks attractive when compared to its industry's average P/B of 9.57. Over the past year, DKS's P/B has been as high as 4.80 and as low as 2.49, with a median of 3.38.

Finally, we should also recognize that DKS has a P/CF ratio of 7.26. 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 stock's P/CF looks attractive against its industry's average P/CF of 18.15. Over the past 52 weeks, DKS's P/CF has been as high as 9.89 and as low as 6.34, with a median of 8.10.

If you're looking for another solid Retail - Miscellaneous value stock, take a look at Itochu (ITOCY - Free Report) . ITOCY is a # 2 (Buy) stock with a Value score of A.

Shares of Itochu are currently trading at a forward earnings multiple of 8.13 and a PEG ratio of 0.55 compared to its industry's P/E and PEG ratios of 18.09 and 0.65, respectively.

Over the last 12 months, ITOCY's P/E has been as high as 11.36, as low as 6.76, with a median of 8.10, and its PEG ratio has been as high as 3.07, as low as 0.34, with a median of 0.52.

Itochu also has a P/B ratio of 1.27 compared to its industry's price-to-book ratio of 9.57. Over the past year, its P/B ratio has been as high as 1.44, as low as 1.15, with a median of 1.26.

These are only a few of the key metrics included in DICK'S Sporting Goods and Itochu strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DKS and ITOCY look like an impressive value stock at the moment.


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DICK'S Sporting Goods, Inc. (DKS) - free report >>

Itochu Corp. (ITOCY) - free report >>

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