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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is DICK'S Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.04. This compares to its industry's average Forward P/E of 15.90. Over the past 52 weeks, DKS's Forward P/E has been as high as 19.19 and as low as 7.28, with a median of 13.06.
Another notable valuation metric for DKS is its P/B ratio of 3.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.78. Within the past 52 weeks, DKS's P/B has been as high as 4.80 and as low as 2.54, with a median of 3.48.
Finally, investors should note that DKS has a P/CF ratio of 6.52. 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 10.31. Within the past 12 months, DKS's P/CF has been as high as 9.89 and as low as 6.34, with a median of 7.74.
Another great Retail - Miscellaneous stock you could consider is Itochu (ITOCY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Itochu are currently trading at a forward earnings multiple of 8.80 and a PEG ratio of 0.57 compared to its industry's P/E and PEG ratios of 15.90 and 0.56, respectively.
Over the past year, ITOCY's P/E has been as high as 11.36, as low as 6.76, with a median of 8.14; its PEG ratio has been as high as 3.07, as low as 0.34, with a median of 1.69 during the same time period.
Itochu also has a P/B ratio of 1.35 compared to its industry's price-to-book ratio of 8.78. Over the past year, its P/B ratio has been as high as 1.44, as low as 1.15, with a median of 1.26.
Value investors will likely look at more than just these metrics, but the above data helps show that DICK'S Sporting Goods and Itochu are likely undervalued currently. And when considering the strength of its earnings outlook, DKS and ITOCY sticks out as one of the market's strongest value stocks.
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is DICK'S Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.04. This compares to its industry's average Forward P/E of 15.90. Over the past 52 weeks, DKS's Forward P/E has been as high as 19.19 and as low as 7.28, with a median of 13.06.
Another notable valuation metric for DKS is its P/B ratio of 3.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.78. Within the past 52 weeks, DKS's P/B has been as high as 4.80 and as low as 2.54, with a median of 3.48.
Finally, investors should note that DKS has a P/CF ratio of 6.52. 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 10.31. Within the past 12 months, DKS's P/CF has been as high as 9.89 and as low as 6.34, with a median of 7.74.
Another great Retail - Miscellaneous stock you could consider is Itochu (ITOCY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Itochu are currently trading at a forward earnings multiple of 8.80 and a PEG ratio of 0.57 compared to its industry's P/E and PEG ratios of 15.90 and 0.56, respectively.
Over the past year, ITOCY's P/E has been as high as 11.36, as low as 6.76, with a median of 8.14; its PEG ratio has been as high as 3.07, as low as 0.34, with a median of 1.69 during the same time period.
Itochu also has a P/B ratio of 1.35 compared to its industry's price-to-book ratio of 8.78. Over the past year, its P/B ratio has been as high as 1.44, as low as 1.15, with a median of 1.26.
Value investors will likely look at more than just these metrics, but the above data helps show that DICK'S Sporting Goods and Itochu are likely undervalued currently. And when considering the strength of its earnings outlook, DKS and ITOCY sticks out as one of the market's strongest value stocks.