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Are These Retail-Wholesale Stocks a Great Value Stocks Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Citi Trends (CTRN - Free Report) is a stock many investors are watching right now. CTRN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.23 right now. For comparison, its industry sports an average P/E of 10.89. Over the past year, CTRN's Forward P/E has been as high as 31.94 and as low as 4.23, with a median of 12.89.
Investors should also recognize that CTRN has a P/B ratio of 2.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CTRN's current P/B looks attractive when compared to its industry's average P/B of 3.15. Over the past 12 months, CTRN's P/B has been as high as 8.03 and as low as 2.58, with a median of 5.23.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CTRN has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that CTRN has a P/CF ratio of 3.23. 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 stock's P/CF looks attractive against its industry's average P/CF of 10.92. Over the past 52 weeks, CTRN's P/CF has been as high as 25 and as low as 3.23, with a median of 8.40.
Another great Retail - Apparel and Shoes stock you could consider is SuperGroup (SEPGY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
SuperGroup sports a P/B ratio of 1.55 as well; this compares to its industry's price-to-book ratio of 3.15. In the past 52 weeks, SEPGY's P/B has been as high as 4.63, as low as 1.55, with a median of 2.47.
These are only a few of the key metrics included in Citi Trends and SuperGroup strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CTRN and SEPGY look like an impressive value stock at the moment.
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Are These Retail-Wholesale Stocks a Great Value Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Citi Trends (CTRN - Free Report) is a stock many investors are watching right now. CTRN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.23 right now. For comparison, its industry sports an average P/E of 10.89. Over the past year, CTRN's Forward P/E has been as high as 31.94 and as low as 4.23, with a median of 12.89.
Investors should also recognize that CTRN has a P/B ratio of 2.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CTRN's current P/B looks attractive when compared to its industry's average P/B of 3.15. Over the past 12 months, CTRN's P/B has been as high as 8.03 and as low as 2.58, with a median of 5.23.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CTRN has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that CTRN has a P/CF ratio of 3.23. 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 stock's P/CF looks attractive against its industry's average P/CF of 10.92. Over the past 52 weeks, CTRN's P/CF has been as high as 25 and as low as 3.23, with a median of 8.40.
Another great Retail - Apparel and Shoes stock you could consider is SuperGroup (SEPGY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
SuperGroup sports a P/B ratio of 1.55 as well; this compares to its industry's price-to-book ratio of 3.15. In the past 52 weeks, SEPGY's P/B has been as high as 4.63, as low as 1.55, with a median of 2.47.
These are only a few of the key metrics included in Citi Trends and SuperGroup strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CTRN and SEPGY look like an impressive value stock at the moment.