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Are These Retail-Wholesale Stocks Undervalued Right Now?

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

SuperGroup (SEPGY - Free Report) is a stock many investors are watching right now. SEPGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.34 right now. For comparison, its industry sports an average P/E of 12. Over the past year, SEPGY's Forward P/E has been as high as 1,321.55 and as low as -3,558.75, with a median of 45.18.

Investors should also recognize that SEPGY has a P/B ratio of 2.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. SEPGY's current P/B looks attractive when compared to its industry's average P/B of 3.86. Over the past year, SEPGY's P/B has been as high as 4.63 and as low as 1.74, with a median of 2.47.

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.

Furthermore, Zumiez holds a P/B ratio of 1.87 and its industry's price-to-book ratio is 3.86. ZUMZ's P/B has been as high as 2.36, as low as 1.63, with a median of 1.98 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that SuperGroup and Zumiez are likely undervalued currently. And when considering the strength of its earnings outlook, SEPGY and ZUMZ sticks out as one of the market's strongest value stocks.


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Zumiez Inc. (ZUMZ) - free report >>

SuperGroup PLC Unsponsored ADR (SEPGY) - free report >>

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