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Is The Buckle (BKE) Stock Undervalued 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.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

The Buckle (BKE - Free Report) is a stock many investors are watching right now. BKE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.46 right now. For comparison, its industry sports an average P/E of 10.18. Over the last 12 months, BKE's Forward P/E has been as high as 13.47 and as low as 5.16, with a median of 9.38.

Finally, investors should note that BKE has a P/CF ratio of 5.09. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BKE's current P/CF looks attractive when compared to its industry's average P/CF of 5.64. BKE's P/CF has been as high as 10.88 and as low as 4.79, with a median of 7.90, all within the past year.

Investors could also keep in mind Chico's FAS , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Chico's FAS also has a P/B ratio of 2.62 compared to its industry's price-to-book ratio of 2.64. Over the past year, its P/B ratio has been as high as 5.40, as low as 1.95, with a median of 2.99.

These are just a handful of the figures considered in The Buckle and Chico's FAS'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 BKE and CHS is an impressive value stock right now.


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