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Are These Retail-Wholesale Stocks Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Sportsman's Warehouse (SPWH - Free Report) . SPWH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.31. This compares to its industry's average Forward P/E of 10.36. Over the past 52 weeks, SPWH's Forward P/E has been as high as 15.65 and as low as 6.56, with a median of 9.37.
Investors should also recognize that SPWH has a P/B ratio of 1.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.07. SPWH's P/B has been as high as 3.76 and as low as 1.45, with a median of 3.33, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SPWH has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.47.
Finally, our model also underscores that SPWH has a P/CF ratio of 3.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.09. Within the past 12 months, SPWH's P/CF has been as high as 7.54 and as low as 3.42, with a median of 6.29.
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 currently trading with a Forward P/E ratio of 8.43 while its PEG ratio sits at 0.84. Both of the company's metrics compare favorably to its industry's average P/E of 10.36 and average PEG ratio of 0.56.
Over the last 12 months, TPR's P/E has been as high as 17.24, as low as 8.20, with a median of 11.86, and its PEG ratio has been as high as 1.72, as low as 0.66, with a median of 1.
Tapestry also has a P/B ratio of 3 compared to its industry's price-to-book ratio of 3.07. Over the past year, its P/B ratio has been as high as 4.54, as low as 2.90, with a median of 3.58.
These are only a few of the key metrics included in Sportsman's Warehouse and Tapestry strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SPWH and TPR look like an impressive value stock at the moment.
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Are These Retail-Wholesale Stocks Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Sportsman's Warehouse (SPWH - Free Report) . SPWH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.31. This compares to its industry's average Forward P/E of 10.36. Over the past 52 weeks, SPWH's Forward P/E has been as high as 15.65 and as low as 6.56, with a median of 9.37.
Investors should also recognize that SPWH has a P/B ratio of 1.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.07. SPWH's P/B has been as high as 3.76 and as low as 1.45, with a median of 3.33, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SPWH has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.47.
Finally, our model also underscores that SPWH has a P/CF ratio of 3.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.09. Within the past 12 months, SPWH's P/CF has been as high as 7.54 and as low as 3.42, with a median of 6.29.
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 currently trading with a Forward P/E ratio of 8.43 while its PEG ratio sits at 0.84. Both of the company's metrics compare favorably to its industry's average P/E of 10.36 and average PEG ratio of 0.56.
Over the last 12 months, TPR's P/E has been as high as 17.24, as low as 8.20, with a median of 11.86, and its PEG ratio has been as high as 1.72, as low as 0.66, with a median of 1.
Tapestry also has a P/B ratio of 3 compared to its industry's price-to-book ratio of 3.07. Over the past year, its P/B ratio has been as high as 4.54, as low as 2.90, with a median of 3.58.
These are only a few of the key metrics included in Sportsman's Warehouse and Tapestry strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SPWH and TPR look like an impressive value stock at the moment.