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Should Value Investors Buy J.Jill (JILL) Stock?

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is J.Jill (JILL - Free Report) . JILL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.66, which compares to its industry's average of 14.18. Over the past 52 weeks, JILL's Forward P/E has been as high as 11.37 and as low as -10.08, with a median of 7.93.

Finally, investors will want to recognize that JILL has a P/CF ratio of 5.67. 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. JILL's P/CF compares to its industry's average P/CF of 10.92. Over the past 52 weeks, JILL's P/CF has been as high as 5.68 and as low as 2.89, with a median of 4.71.

Investors could also keep in mind Urban Outfitters (URBN - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Shares of Urban Outfitters currently holds a Forward P/E ratio of 10.10, and its PEG ratio is 0.43. In comparison, its industry sports average P/E and PEG ratios of 14.18 and 0.88.

URBN's Forward P/E has been as high as 16.59 and as low as 9.94, with a median of 11.52. During the same time period, its PEG ratio has been as high as 0.92, as low as 0.42, with a median of 0.64.

Additionally, Urban Outfitters has a P/B ratio of 1.56 while its industry's price-to-book ratio sits at 3.01. For URBN, this valuation metric has been as high as 1.79, as low as 1.07, with a median of 1.39 over the past year.

These are just a handful of the figures considered in J.Jill and Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JILL and URBN is an impressive value stock right now.


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