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Is Oxford Industries (OXM) Stock Undervalued Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Oxford Industries (OXM - Free Report) . OXM 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 8.89. This compares to its industry's average Forward P/E of 12.03. Over the past 52 weeks, OXM's Forward P/E has been as high as 15.39 and as low as 7.71, with a median of 9.92.

Another notable valuation metric for OXM is its P/B ratio of 3.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. OXM's current P/B looks attractive when compared to its industry's average P/B of 6.40. Within the past 52 weeks, OXM's P/B has been as high as 3.62 and as low as 2.53, with a median of 2.94.

Finally, investors will want to recognize that OXM has a P/CF ratio of 7.98. 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. OXM's P/CF compares to its industry's average P/CF of 18.08. OXM's P/CF has been as high as 13.89 and as low as 6.56, with a median of 8.22, all within the past year.

Another great Textile - Apparel stock you could consider is PVH (PVH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

PVH is trading at a forward earnings multiple of 8.88 at the moment, with a PEG ratio of 0.93. This compares to its industry's average P/E of 12.03 and average PEG ratio of 1.65.

PVH's price-to-earnings ratio has been as high as 11.08 and as low as 5.38, with a median of 7.32, while its PEG ratio has been as high as 7.08 and as low as 0.12, with a median of 0.66, all within the past year.

PVH also has a P/B ratio of 1.02 compared to its industry's price-to-book ratio of 6.40. Over the past year, its P/B ratio has been as high as 1.53, as low as 0.56, with a median of 0.87.

These are only a few of the key metrics included in Oxford Industries and PVH strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OXM and PVH look like an impressive value stock at the moment.


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