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Are These Retail-Wholesale Stocks 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.

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.

Citi Trends (CTRN - Free Report) is a stock many investors are watching right now. CTRN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.52. This compares to its industry's average Forward P/E of 11.94. CTRN's Forward P/E has been as high as 35.21 and as low as 6.52, with a median of 15.12, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CTRN has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.55.

If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at J.Jill (JILL - Free Report) . JILL is a # 1 (Strong Buy) stock with a Value score of A.

Furthermore, J.Jill holds a P/B ratio of -3.04 and its industry's price-to-book ratio is 3.82. JILL's P/B has been as high as -0.39, as low as -4.07, with a median of -1.89 over the past 12 months.

These are just a handful of the figures considered in Citi Trends and J.Jill'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 CTRN and JILL is an impressive value stock right now.


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Citi Trends, Inc. (CTRN) - free report >>

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