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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company value investors might notice is MarineMax (HZO - Free Report) . HZO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 6.23 right now. For comparison, its industry sports an average P/E of 17.10. Over the past year, HZO's Forward P/E has been as high as 14 and as low as 5.69, with a median of 7.93.
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. HZO has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.76.
Finally, investors should note that HZO has a P/CF ratio of 5.83. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.78. HZO's P/CF has been as high as 13.67 and as low as 5.18, with a median of 7.48, all within the past year.
Another great Retail - Miscellaneous stock you could consider is Petco Health and Wellness Co. (WOOF - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Petco Health and Wellness Co. is currently trading with a Forward P/E ratio of 20.16 while its PEG ratio sits at 0.43. Both of the company's metrics compare favorably to its industry's average P/E of 17.10 and average PEG ratio of 0.62.
WOOF's Forward P/E has been as high as 49.98 and as low as 18.76, with a median of 27.53. During the same time period, its PEG ratio has been as high as 0.90, as low as 0.40, with a median of 0.59.
Petco Health and Wellness Co. sports a P/B ratio of 1.91 as well; this compares to its industry's price-to-book ratio of 9.38. In the past 52 weeks, WOOF's P/B has been as high as 3.07, as low as 1.78, with a median of 2.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MarineMax and Petco Health and Wellness Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HZO and WOOF feels like a great value stock at the moment.
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Are These Retail-Wholesale Stocks Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company value investors might notice is MarineMax (HZO - Free Report) . HZO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 6.23 right now. For comparison, its industry sports an average P/E of 17.10. Over the past year, HZO's Forward P/E has been as high as 14 and as low as 5.69, with a median of 7.93.
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. HZO has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.76.
Finally, investors should note that HZO has a P/CF ratio of 5.83. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.78. HZO's P/CF has been as high as 13.67 and as low as 5.18, with a median of 7.48, all within the past year.
Another great Retail - Miscellaneous stock you could consider is Petco Health and Wellness Co. (WOOF - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Petco Health and Wellness Co. is currently trading with a Forward P/E ratio of 20.16 while its PEG ratio sits at 0.43. Both of the company's metrics compare favorably to its industry's average P/E of 17.10 and average PEG ratio of 0.62.
WOOF's Forward P/E has been as high as 49.98 and as low as 18.76, with a median of 27.53. During the same time period, its PEG ratio has been as high as 0.90, as low as 0.40, with a median of 0.59.
Petco Health and Wellness Co. sports a P/B ratio of 1.91 as well; this compares to its industry's price-to-book ratio of 9.38. In the past 52 weeks, WOOF's P/B has been as high as 3.07, as low as 1.78, with a median of 2.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MarineMax and Petco Health and Wellness Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HZO and WOOF feels like a great value stock at the moment.