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Should Value Investors Buy These Retail-Wholesale Stocks?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Itochu (ITOCY - Free Report) . ITOCY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.56, while its industry has an average P/E of 17.36. Over the last 12 months, ITOCY's Forward P/E has been as high as 11.36 and as low as 6.76, with a median of 8.11.
ITOCY is also sporting a PEG ratio of 0.57. 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. ITOCY's PEG compares to its industry's average PEG of 0.63. Within the past year, ITOCY's PEG has been as high as 3.07 and as low as 0.34, with a median of 0.52.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ITOCY has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.7.
Finally, investors will want to recognize that ITOCY has a P/CF ratio of 4.99. 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. ITOCY's P/CF compares to its industry's average P/CF of 17.48. Over the past year, ITOCY's P/CF has been as high as 6.34 and as low as 4.31, with a median of 4.96.
Another great Retail - Miscellaneous stock you could consider is Sally Beauty (SBH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Sally Beauty are currently trading at a forward earnings multiple of 6.85 and a PEG ratio of 0.30 compared to its industry's P/E and PEG ratios of 17.36 and 0.63, respectively.
SBH's price-to-earnings ratio has been as high as 13.72 and as low as 6.34, with a median of 8.23, while its PEG ratio has been as high as 0.30 and as low as 0.24, with a median of 0.27, all within the past year.
Sally Beauty sports a P/B ratio of 7.28 as well; this compares to its industry's price-to-book ratio of 9.22. In the past 52 weeks, SBH's P/B has been as high as 24.32, as low as 6.14, with a median of 10.53.
Value investors will likely look at more than just these metrics, but the above data helps show that Itochu and Sally Beauty are likely undervalued currently. And when considering the strength of its earnings outlook, ITOCY and SBH sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy These Retail-Wholesale Stocks?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Itochu (ITOCY - Free Report) . ITOCY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.56, while its industry has an average P/E of 17.36. Over the last 12 months, ITOCY's Forward P/E has been as high as 11.36 and as low as 6.76, with a median of 8.11.
ITOCY is also sporting a PEG ratio of 0.57. 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. ITOCY's PEG compares to its industry's average PEG of 0.63. Within the past year, ITOCY's PEG has been as high as 3.07 and as low as 0.34, with a median of 0.52.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ITOCY has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.7.
Finally, investors will want to recognize that ITOCY has a P/CF ratio of 4.99. 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. ITOCY's P/CF compares to its industry's average P/CF of 17.48. Over the past year, ITOCY's P/CF has been as high as 6.34 and as low as 4.31, with a median of 4.96.
Another great Retail - Miscellaneous stock you could consider is Sally Beauty (SBH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Sally Beauty are currently trading at a forward earnings multiple of 6.85 and a PEG ratio of 0.30 compared to its industry's P/E and PEG ratios of 17.36 and 0.63, respectively.
SBH's price-to-earnings ratio has been as high as 13.72 and as low as 6.34, with a median of 8.23, while its PEG ratio has been as high as 0.30 and as low as 0.24, with a median of 0.27, all within the past year.
Sally Beauty sports a P/B ratio of 7.28 as well; this compares to its industry's price-to-book ratio of 9.22. In the past 52 weeks, SBH's P/B has been as high as 24.32, as low as 6.14, with a median of 10.53.
Value investors will likely look at more than just these metrics, but the above data helps show that Itochu and Sally Beauty are likely undervalued currently. And when considering the strength of its earnings outlook, ITOCY and SBH sticks out as one of the market's strongest value stocks.