Back to top

Image: Bigstock

Should Value Investors Buy Oxford Industries (OXM) Stock?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Oxford Industries (OXM - Free Report) . OXM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.05. This compares to its industry's average Forward P/E of 12.13. Over the past year, OXM's Forward P/E has been as high as 12.63 and as low as 7.71, with a median of 9.52.

We should also highlight that OXM has a P/B ratio of 3.17. 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. This stock's P/B looks solid versus its industry's average P/B of 6.91. OXM's P/B has been as high as 3.52 and as low as 2.53, with a median of 2.90, over the past year.

Finally, investors will want to recognize that OXM has a P/CF ratio of 8.42. 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 20.40. Over the past 52 weeks, OXM's P/CF has been as high as 12.79 and as low as 6.56, with a median of 7.88.

PVH (PVH - Free Report) may be another strong Textile - Apparel stock to add to your shortlist. PVH is a # 2 (Buy) stock with a Value grade of A.

Shares of PVH are currently trading at a forward earnings multiple of 9.33 and a PEG ratio of 0.91 compared to its industry's P/E and PEG ratios of 12.13 and 1.62, respectively.

Over the last 12 months, PVH's P/E has been as high as 10.44, as low as 5.38, with a median of 7.32, and its PEG ratio has been as high as 7.08, as low as 0.12, with a median of 0.71.

Furthermore, PVH holds a P/B ratio of 1.11 and its industry's price-to-book ratio is 6.91. PVH's P/B has been as high as 1.44, as low as 0.56, with a median of 0.87 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Oxford Industries and PVH are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OXM and PVH feels like a great value stock at the moment.


See More Zacks Research for These Tickers


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


PVH Corp. (PVH) - free report >>

Oxford Industries, Inc. (OXM) - free report >>

Published in