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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Genesco (GCO - Free Report) . GCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.60, while its industry has an average P/E of 9.82. GCO's Forward P/E has been as high as 14.48 and as low as 8.11, with a median of 10.56, all within the past year.
Another valuation metric that we should highlight is GCO's P/B ratio of 1.59. Investors use the P/B ratio to look at a stock's market value versus 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 3.04. GCO's P/B has been as high as 1.81 and as low as 1.22, with a median of 1.55, 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. GCO has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.47.
Another great Retail - Apparel and Shoes stock you could consider is J.Jill (JILL - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, J.Jill holds a P/B ratio of -3.52 and its industry's price-to-book ratio is 3.04. JILL's P/B has been as high as -0.75, as low as -4.07, with a median of -3.18 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Genesco and J.Jill are likely undervalued currently. And when considering the strength of its earnings outlook, GCO and JILL sticks out as one of the market's strongest value stocks.
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Is Genesco (GCO) Stock Undervalued 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Genesco (GCO - Free Report) . GCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.60, while its industry has an average P/E of 9.82. GCO's Forward P/E has been as high as 14.48 and as low as 8.11, with a median of 10.56, all within the past year.
Another valuation metric that we should highlight is GCO's P/B ratio of 1.59. Investors use the P/B ratio to look at a stock's market value versus 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 3.04. GCO's P/B has been as high as 1.81 and as low as 1.22, with a median of 1.55, 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. GCO has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.47.
Another great Retail - Apparel and Shoes stock you could consider is J.Jill (JILL - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, J.Jill holds a P/B ratio of -3.52 and its industry's price-to-book ratio is 3.04. JILL's P/B has been as high as -0.75, as low as -4.07, with a median of -3.18 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Genesco and J.Jill are likely undervalued currently. And when considering the strength of its earnings outlook, GCO and JILL sticks out as one of the market's strongest value stocks.