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Should Value Investors Buy Designer Brands (DBI) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Designer Brands (DBI - Free Report) . DBI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.39. This compares to its industry's average Forward P/E of 9.36. Over the last 12 months, DBI's Forward P/E has been as high as 34.30 and as low as 6.64, with a median of 10.22.
We should also highlight that DBI has a P/B ratio of 2.50. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.76. Over the past year, DBI's P/B has been as high as 5.57 and as low as 2.01, with a median of 2.87.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DBI has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.39.
Finally, we should also recognize that DBI has a P/CF ratio of 4.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DBI's current P/CF looks attractive when compared to its industry's average P/CF of 6.09. Within the past 12 months, DBI's P/CF has been as high as 15.35 and as low as -41.18, with a median of 4.13.
Nordstrom (JWN - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. JWN is a # 2 (Buy) stock with a Value grade of A.
Nordstrom is currently trading with a Forward P/E ratio of 7.27 while its PEG ratio sits at 1.21. Both of the company's metrics compare favorably to its industry's average P/E of 9.36 and average PEG ratio of 0.57.
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Should Value Investors Buy Designer Brands (DBI) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Designer Brands (DBI - Free Report) . DBI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.39. This compares to its industry's average Forward P/E of 9.36. Over the last 12 months, DBI's Forward P/E has been as high as 34.30 and as low as 6.64, with a median of 10.22.
We should also highlight that DBI has a P/B ratio of 2.50. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.76. Over the past year, DBI's P/B has been as high as 5.57 and as low as 2.01, with a median of 2.87.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DBI has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.39.
Finally, we should also recognize that DBI has a P/CF ratio of 4.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DBI's current P/CF looks attractive when compared to its industry's average P/CF of 6.09. Within the past 12 months, DBI's P/CF has been as high as 15.35 and as low as -41.18, with a median of 4.13.
Nordstrom (JWN - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. JWN is a # 2 (Buy) stock with a Value grade of A.
Nordstrom is currently trading with a Forward P/E ratio of 7.27 while its PEG ratio sits at 1.21. Both of the company's metrics compare favorably to its industry's average P/E of 9.36 and average PEG ratio of 0.57.