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Is Chico's FAS (CHS) 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 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 Chico's FAS . CHS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.23. This compares to its industry's average Forward P/E of 10.40. CHS's Forward P/E has been as high as 60.59 and as low as 6.56, with a median of 11.21, all within the past year.

We should also highlight that CHS has a P/B ratio of 2.69. 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 2.71. CHS's P/B has been as high as 4.91 and as low as 1.95, with a median of 2.83, over the past year.

Finally, we should also recognize that CHS has a P/CF ratio of 4.81. 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. CHS's P/CF compares to its industry's average P/CF of 5.92. Within the past 12 months, CHS's P/CF has been as high as 72.75 and as low as -13.60, with a median of 5.

If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at J.Jill (JILL - Free Report) . JILL is a # 1 (Strong Buy) stock with a Value score of A.

J.Jill also has a P/B ratio of -5.40 compared to its industry's price-to-book ratio of 2.71. Over the past year, its P/B ratio has been as high as -1.89, as low as -6.39, with a median of -3.46.

Value investors will likely look at more than just these metrics, but the above data helps show that Chico's FAS and J.Jill are likely undervalued currently. And when considering the strength of its earnings outlook, CHS and JILL sticks out as one of the market's strongest value stocks.


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