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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Chico's FAS . CHS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.10 right now. For comparison, its industry sports an average P/E of 12.35. CHS's Forward P/E has been as high as 13.04 and as low as 4.98, with a median of 8.71, all within the past year.
Another notable valuation metric for CHS is its P/B ratio of 2.32. 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. CHS's current P/B looks attractive when compared to its industry's average P/B of 2.92. Over the past year, CHS's P/B has been as high as 3.31 and as low as 1.92, with a median of 2.58.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CHS has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.43.
Finally, investors will want to recognize that CHS has a P/CF ratio of 4.78. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.74. Over the past year, CHS's P/CF has been as high as 57.08 and as low as 3.48, with a median of 5.
Urban Outfitters (URBN - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. URBN is a # 2 (Buy) stock with a Value grade of A.
Urban Outfitters is currently trading with a Forward P/E ratio of 13.18 while its PEG ratio sits at 0.73. Both of the company's metrics compare favorably to its industry's average P/E of 12.35 and average PEG ratio of 0.76.
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Is Chico's FAS (CHS) Stock Undervalued Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Chico's FAS . CHS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.10 right now. For comparison, its industry sports an average P/E of 12.35. CHS's Forward P/E has been as high as 13.04 and as low as 4.98, with a median of 8.71, all within the past year.
Another notable valuation metric for CHS is its P/B ratio of 2.32. 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. CHS's current P/B looks attractive when compared to its industry's average P/B of 2.92. Over the past year, CHS's P/B has been as high as 3.31 and as low as 1.92, with a median of 2.58.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CHS has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.43.
Finally, investors will want to recognize that CHS has a P/CF ratio of 4.78. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.74. Over the past year, CHS's P/CF has been as high as 57.08 and as low as 3.48, with a median of 5.
Urban Outfitters (URBN - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. URBN is a # 2 (Buy) stock with a Value grade of A.
Urban Outfitters is currently trading with a Forward P/E ratio of 13.18 while its PEG ratio sits at 0.73. Both of the company's metrics compare favorably to its industry's average P/E of 12.35 and average PEG ratio of 0.76.