Back to top

Image: Bigstock

Is The Buckle (BKE) a Great Value Stock Right Now?

Read MoreHide Full Article

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is The Buckle (BKE - Free Report) . BKE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.48. This compares to its industry's average Forward P/E of 11.37. BKE's Forward P/E has been as high as 13 and as low as 5.08, with a median of 7.65, all within the past year.

Finally, our model also underscores that BKE has a P/CF ratio of 6.08. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.30. BKE's P/CF has been as high as 9.99 and as low as 4.74, with a median of 6.51, all within the past year.

Another great Retail - Apparel and Shoes stock you could consider is Hennes & Mauritz (HNNMY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Hennes & Mauritz also has a P/B ratio of 2.77 compared to its industry's price-to-book ratio of 2.87. Over the past year, its P/B ratio has been as high as 4.49, as low as 2.38, with a median of 3.55.

These figures are just a handful of the metrics value investors tend to look at, but they help show that The Buckle and Hennes & Mauritz are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BKE and HNNMY feels like a great value stock at the moment.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


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

Hennes & Mauritz AB (HNNMY) - free report >>

Published in