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Should Value Investors Buy These Consumer Discretionary Stocks?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Crocs (CROX - Free Report) . CROX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.61. This compares to its industry's average Forward P/E of 13.71. CROX's Forward P/E has been as high as 25.08 and as low as 7.61, with a median of 18.52, all within the past year.
We also note that CROX holds a PEG ratio of 0.51. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CROX's industry has an average PEG of 0.67 right now. Within the past year, CROX's PEG has been as high as 1.67 and as low as 0.51, with a median of 1.24.
Finally, we should also recognize that CROX has a P/CF ratio of 6.29. 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. CROX's P/CF compares to its industry's average P/CF of 21.44. Over the past year, CROX's P/CF has been as high as 18.09 and as low as 6.29, with a median of 13.13.
If you're looking for another solid Textile - Apparel value stock, take a look at Jerash Holdings (JRSH - Free Report) . JRSH is a # 2 (Buy) stock with a Value score of A.
Jerash Holdings also has a P/B ratio of 1.19 compared to its industry's price-to-book ratio of 7.18. Over the past year, its P/B ratio has been as high as 1.59, as low as 1.06, with a median of 1.28.
These are just a handful of the figures considered in Crocs and Jerash Holdings'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 CROX and JRSH is an impressive value stock right now.
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Should Value Investors Buy These Consumer Discretionary Stocks?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Crocs (CROX - Free Report) . CROX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.61. This compares to its industry's average Forward P/E of 13.71. CROX's Forward P/E has been as high as 25.08 and as low as 7.61, with a median of 18.52, all within the past year.
We also note that CROX holds a PEG ratio of 0.51. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CROX's industry has an average PEG of 0.67 right now. Within the past year, CROX's PEG has been as high as 1.67 and as low as 0.51, with a median of 1.24.
Finally, we should also recognize that CROX has a P/CF ratio of 6.29. 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. CROX's P/CF compares to its industry's average P/CF of 21.44. Over the past year, CROX's P/CF has been as high as 18.09 and as low as 6.29, with a median of 13.13.
If you're looking for another solid Textile - Apparel value stock, take a look at Jerash Holdings (JRSH - Free Report) . JRSH is a # 2 (Buy) stock with a Value score of A.
Jerash Holdings also has a P/B ratio of 1.19 compared to its industry's price-to-book ratio of 7.18. Over the past year, its P/B ratio has been as high as 1.59, as low as 1.06, with a median of 1.28.
These are just a handful of the figures considered in Crocs and Jerash Holdings'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 CROX and JRSH is an impressive value stock right now.