Back to top

Image: Bigstock

Are These Retail-Wholesale Stocks a Great Value Stocks Right Now?

Read MoreHide Full Article

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Chico's FAS . CHS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.56, which compares to its industry's average of 12.20. Over the last 12 months, CHS's Forward P/E has been as high as 185.57 and as low as -50.86, with a median of 12.33.

We should also highlight that CHS has a P/B ratio of 2.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.53. Within the past 52 weeks, CHS's P/B has been as high as 5.40 and as low as 2.04, with a median of 3.15.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CHS has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.53.

Finally, we should also recognize that CHS has a P/CF ratio of 5.91. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.21. CHS's P/CF has been as high as 72.75 and as low as -13.60, with a median of -2.35, all within the past year.

Nordstrom (JWN - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. JWN is a # 1 (Strong Buy) stock with a Value grade of A.

Nordstrom is trading at a forward earnings multiple of 8.01 at the moment, with a PEG ratio of 1.33. This compares to its industry's average P/E of 12.20 and average PEG ratio of 0.54.

JWN's Forward P/E has been as high as 33.54 and as low as 6.97, with a median of 15.29. During the same time period, its PEG ratio has been as high as 5.59, as low as 1.16, with a median of 2.55.

Additionally, Nordstrom has a P/B ratio of 7.24 while its industry's price-to-book ratio sits at 3.53. For JWN, this valuation metric has been as high as 41.27, as low as 5.36, with a median of 16.91 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Chico's FAS and Nordstrom are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CHS and JWN feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nordstrom, Inc. (JWN) - free report >>

Published in