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Are These Retail-Wholesale 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Genesco (GCO - Free Report) . GCO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.07. This compares to its industry's average Forward P/E of 11.87. Over the past 52 weeks, GCO's Forward P/E has been as high as 14.48 and as low as 8.11, with a median of 11.19.
Investors should also recognize that GCO has a P/B ratio of 1.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GCO's current P/B looks attractive when compared to its industry's average P/B of 3.45. GCO's P/B has been as high as 1.81 and as low as 1.12, with a median of 1.53, over 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. GCO has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.52.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Tapestry (TPR - Free Report) . TPR is a # 2 (Buy) stock with a Value score of A.
Tapestry is trading at a forward earnings multiple of 9.57 at the moment, with a PEG ratio of 0.77. This compares to its industry's average P/E of 11.87 and average PEG ratio of 0.53.
TPR's Forward P/E has been as high as 17.24 and as low as 8.20, with a median of 11.99. During the same time period, its PEG ratio has been as high as 1.72, as low as 0.66, with a median of 1.02.
Tapestry sports a P/B ratio of 3.40 as well; this compares to its industry's price-to-book ratio of 3.45. In the past 52 weeks, TPR's P/B has been as high as 4.54, as low as 2.90, with a median of 3.60.
These are just a handful of the figures considered in Genesco and Tapestry's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GCO and TPR is an impressive value stock right now.
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Are These Retail-Wholesale 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Genesco (GCO - Free Report) . GCO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.07. This compares to its industry's average Forward P/E of 11.87. Over the past 52 weeks, GCO's Forward P/E has been as high as 14.48 and as low as 8.11, with a median of 11.19.
Investors should also recognize that GCO has a P/B ratio of 1.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GCO's current P/B looks attractive when compared to its industry's average P/B of 3.45. GCO's P/B has been as high as 1.81 and as low as 1.12, with a median of 1.53, over 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. GCO has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.52.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Tapestry (TPR - Free Report) . TPR is a # 2 (Buy) stock with a Value score of A.
Tapestry is trading at a forward earnings multiple of 9.57 at the moment, with a PEG ratio of 0.77. This compares to its industry's average P/E of 11.87 and average PEG ratio of 0.53.
TPR's Forward P/E has been as high as 17.24 and as low as 8.20, with a median of 11.99. During the same time period, its PEG ratio has been as high as 1.72, as low as 0.66, with a median of 1.02.
Tapestry sports a P/B ratio of 3.40 as well; this compares to its industry's price-to-book ratio of 3.45. In the past 52 weeks, TPR's P/B has been as high as 4.54, as low as 2.90, with a median of 3.60.
These are just a handful of the figures considered in Genesco and Tapestry's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GCO and TPR is an impressive value stock right now.