We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?
Read MoreHide Full Article
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is DICK'S Sporting Goods (DKS - Free Report) . DKS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.52, which compares to its industry's average of 16.50. Over the past year, DKS's Forward P/E has been as high as 19.19 and as low as 7.52, with a median of 13.11.
Another notable valuation metric for DKS is its P/B ratio of 3.96. 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. This stock's P/B looks solid versus its industry's average P/B of 9.55. Within the past 52 weeks, DKS's P/B has been as high as 4.80 and as low as 2.49, with a median of 3.43.
Finally, investors will want to recognize that DKS has a P/CF ratio of 7.53. 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 18.09. 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 7.91.
Investors could also keep in mind Sally Beauty (SBH - Free Report) , an Retail - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Sally Beauty is trading at a forward earnings multiple of 6.80 at the moment, with a PEG ratio of 0.30. This compares to its industry's average P/E of 16.50 and average PEG ratio of 0.60.
SBH's Forward P/E has been as high as 13.72 and as low as 6.34, with a median of 8.19. During the same time period, its PEG ratio has been as high as 0.30, as low as 0.26, with a median of 0.28.
Sally Beauty sports a P/B ratio of 7.25 as well; this compares to its industry's price-to-book ratio of 9.55. 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 9.87.
These are only a few of the key metrics included in DICK'S Sporting Goods and Sally Beauty 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 SBH look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing These Retail-Wholesale Stocks 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is DICK'S Sporting Goods (DKS - Free Report) . DKS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.52, which compares to its industry's average of 16.50. Over the past year, DKS's Forward P/E has been as high as 19.19 and as low as 7.52, with a median of 13.11.
Another notable valuation metric for DKS is its P/B ratio of 3.96. 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. This stock's P/B looks solid versus its industry's average P/B of 9.55. Within the past 52 weeks, DKS's P/B has been as high as 4.80 and as low as 2.49, with a median of 3.43.
Finally, investors will want to recognize that DKS has a P/CF ratio of 7.53. 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 18.09. 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 7.91.
Investors could also keep in mind Sally Beauty (SBH - Free Report) , an Retail - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Sally Beauty is trading at a forward earnings multiple of 6.80 at the moment, with a PEG ratio of 0.30. This compares to its industry's average P/E of 16.50 and average PEG ratio of 0.60.
SBH's Forward P/E has been as high as 13.72 and as low as 6.34, with a median of 8.19. During the same time period, its PEG ratio has been as high as 0.30, as low as 0.26, with a median of 0.28.
Sally Beauty sports a P/B ratio of 7.25 as well; this compares to its industry's price-to-book ratio of 9.55. 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 9.87.
These are only a few of the key metrics included in DICK'S Sporting Goods and Sally Beauty 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 SBH look like an impressive value stock at the moment.