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Are These Consumer Discretionary 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.
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.
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 company value investors might notice is Jerash Holdings (JRSH - Free Report) . JRSH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.95. This compares to its industry's average Forward P/E of 13.07. JRSH's Forward P/E has been as high as 16.97 and as low as 7.99, with a median of 9.87, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JRSH has a P/S ratio of 0.63. This compares to its industry's average P/S of 0.65.
Finally, our model also underscores that JRSH has a P/CF ratio of 8.21. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.74. JRSH's P/CF has been as high as 16.44 and as low as 7.03, with a median of 11.87, all within the past year.
Investors could also keep in mind Kontoor Brands (KTB - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Kontoor Brands currently holds a Forward P/E ratio of 8.98, and its PEG ratio is 1.12. In comparison, its industry sports average P/E and PEG ratios of 13.07 and 0.59.
KTB's Forward P/E has been as high as 17.47 and as low as 8.98, with a median of 12.68. During the same time period, its PEG ratio has been as high as 2.91, as low as 1.12, with a median of 1.59.
Furthermore, Kontoor Brands holds a P/B ratio of 16.73 and its industry's price-to-book ratio is 7.11. KTB's P/B has been as high as 36.16, as low as 14.71, with a median of 20.32 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jerash Holdings and Kontoor Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JRSH and KTB feels like a great value stock at the moment.
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Are These Consumer Discretionary Stocks Undervalued Right Now?
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.
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.
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 company value investors might notice is Jerash Holdings (JRSH - Free Report) . JRSH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.95. This compares to its industry's average Forward P/E of 13.07. JRSH's Forward P/E has been as high as 16.97 and as low as 7.99, with a median of 9.87, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JRSH has a P/S ratio of 0.63. This compares to its industry's average P/S of 0.65.
Finally, our model also underscores that JRSH has a P/CF ratio of 8.21. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.74. JRSH's P/CF has been as high as 16.44 and as low as 7.03, with a median of 11.87, all within the past year.
Investors could also keep in mind Kontoor Brands (KTB - Free Report) , an Textile - Apparel stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Kontoor Brands currently holds a Forward P/E ratio of 8.98, and its PEG ratio is 1.12. In comparison, its industry sports average P/E and PEG ratios of 13.07 and 0.59.
KTB's Forward P/E has been as high as 17.47 and as low as 8.98, with a median of 12.68. During the same time period, its PEG ratio has been as high as 2.91, as low as 1.12, with a median of 1.59.
Furthermore, Kontoor Brands holds a P/B ratio of 16.73 and its industry's price-to-book ratio is 7.11. KTB's P/B has been as high as 36.16, as low as 14.71, with a median of 20.32 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jerash Holdings and Kontoor Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JRSH and KTB feels like a great value stock at the moment.