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Should Value Investors Buy The Buckle (BKE) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 The Buckle (BKE - Free Report) . BKE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.25, while its industry has an average P/E of 10.57. BKE's Forward P/E has been as high as 16.42 and as low as 5.87, with a median of 9.99, all within the past year.

Finally, we should also recognize that BKE has a P/CF ratio of 5.76. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.91. Within the past 12 months, BKE's P/CF has been as high as 10.88 and as low as 5.41, with a median of 8.37.

If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Urban Outfitters (URBN - Free Report) . URBN is a # 2 (Buy) stock with a Value score of A.

Urban Outfitters is currently trading with a Forward P/E ratio of 8.24 while its PEG ratio sits at 0.46. Both of the company's metrics compare favorably to its industry's average P/E of 10.57 and average PEG ratio of 0.58.

URBN's Forward P/E has been as high as 20.39 and as low as 7.81, with a median of 10.12. During the same time period, its PEG ratio has been as high as 1.77, as low as 0.43, with a median of 0.56.

Urban Outfitters also has a P/B ratio of 1.37 compared to its industry's price-to-book ratio of 3.14. Over the past year, its P/B ratio has been as high as 2.64, as low as 1.32, with a median of 1.84.

These are only a few of the key metrics included in The Buckle and Urban Outfitters strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BKE and URBN look like an impressive value stock at the moment.


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