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Should Value Investors Buy The Buckle (BKE) Stock?

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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, 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 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.

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 a Value grade of A. The stock holds a P/E ratio of 5.73, while its industry has an average P/E of 10.46. BKE's Forward P/E has been as high as 13 and as low as 5.08, with a median of 7.97, all within the past year.

Finally, investors should note that BKE has a P/CF ratio of 5.35. 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. BKE's P/CF compares to its industry's average P/CF of 6.02. Over the past year, BKE's P/CF has been as high as 9.99 and as low as 4.74, with a median of 6.91.

Another great Retail - Apparel and Shoes stock you could consider is Designer Brands (DBI - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Designer Brands sports a P/B ratio of 2.58 as well; this compares to its industry's price-to-book ratio of 2.76. In the past 52 weeks, DBI's P/B has been as high as 4.11, as low as 2.01, with a median of 2.64.

Value investors will likely look at more than just these metrics, but the above data helps show that The Buckle and Designer Brands are likely undervalued currently. And when considering the strength of its earnings outlook, BKE and DBI sticks out as one of the market's strongest value stocks.


In-Depth Zacks Research for the Tickers Above


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Buckle, Inc. The (BKE) - free report >>

Designer Brands Inc. (DBI) - free report >>

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