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Are These Consumer Discretionary Stocks a Great Value Stocks Right Now?
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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.
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.
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 Delta Apparel (DLA - Free Report) . DLA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.66, which compares to its industry's average of 12.60. DLA's Forward P/E has been as high as 15.86 and as low as 7.45, with a median of 10.08, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DLA has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that DLA has a P/CF ratio of 5.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DLA's P/CF compares to its industry's average P/CF of 18.86. Over the past year, DLA's P/CF has been as high as 75.67 and as low as 5.05, with a median of 6.50.
If you're looking for another solid Textile - Apparel value stock, take a look at Kontoor Brands (KTB - Free Report) . KTB is a # 2 (Buy) stock with a Value score of A.
Kontoor Brands is trading at a forward earnings multiple of 9.05 at the moment, with a PEG ratio of 1.13. This compares to its industry's average P/E of 12.60 and average PEG ratio of 0.57.
KTB's Forward P/E has been as high as 17.47 and as low as 8.26, with a median of 12.52. During the same time period, its PEG ratio has been as high as 2.91, as low as 1.03, with a median of 1.57.
Additionally, Kontoor Brands has a P/B ratio of 16.87 while its industry's price-to-book ratio sits at 6.83. For KTB, this valuation metric has been as high as 36.16, as low as 14.71, with a median of 20.24 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Delta Apparel and Kontoor Brands are likely undervalued currently. And when considering the strength of its earnings outlook, DLA and KTB sticks out as one of the market's strongest value stocks.
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Are These Consumer Discretionary Stocks a Great Value Stocks Right Now?
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.
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.
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 Delta Apparel (DLA - Free Report) . DLA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.66, which compares to its industry's average of 12.60. DLA's Forward P/E has been as high as 15.86 and as low as 7.45, with a median of 10.08, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DLA has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.65.
Finally, investors will want to recognize that DLA has a P/CF ratio of 5.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DLA's P/CF compares to its industry's average P/CF of 18.86. Over the past year, DLA's P/CF has been as high as 75.67 and as low as 5.05, with a median of 6.50.
If you're looking for another solid Textile - Apparel value stock, take a look at Kontoor Brands (KTB - Free Report) . KTB is a # 2 (Buy) stock with a Value score of A.
Kontoor Brands is trading at a forward earnings multiple of 9.05 at the moment, with a PEG ratio of 1.13. This compares to its industry's average P/E of 12.60 and average PEG ratio of 0.57.
KTB's Forward P/E has been as high as 17.47 and as low as 8.26, with a median of 12.52. During the same time period, its PEG ratio has been as high as 2.91, as low as 1.03, with a median of 1.57.
Additionally, Kontoor Brands has a P/B ratio of 16.87 while its industry's price-to-book ratio sits at 6.83. For KTB, this valuation metric has been as high as 36.16, as low as 14.71, with a median of 20.24 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Delta Apparel and Kontoor Brands are likely undervalued currently. And when considering the strength of its earnings outlook, DLA and KTB sticks out as one of the market's strongest value stocks.