We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
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.
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 The Gap (GPS - Free Report) . GPS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors should also recognize that GPS has a P/B ratio of 3.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.14. GPS's P/B has been as high as 3.31 and as low as 1.25, with a median of 1.73, over the past year.
Finally, our model also underscores that GPS has a P/CF ratio of 12.96. 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. GPS's P/CF compares to its industry's average P/CF of 13.95. Over the past 52 weeks, GPS's P/CF has been as high as 15.37 and as low as 5.38, with a median of 8.28.
Investors could also keep in mind Tapestry (TPR - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Tapestry is trading at a forward earnings multiple of 9.92 at the moment, with a PEG ratio of 0.86. This compares to its industry's average P/E of 15.66 and average PEG ratio of 0.98.
Over the past year, TPR's P/E has been as high as 11.52, as low as 6.25, with a median of 9.41; its PEG ratio has been as high as 0.92, as low as 0.54, with a median of 1.22 during the same time period.
Tapestry also has a P/B ratio of 4.08 compared to its industry's price-to-book ratio of 4.14. Over the past year, its P/B ratio has been as high as 4.63, as low as 2.50, with a median of 3.90.
These are just a handful of the figures considered in The Gap and Tapestry'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 GPS and TPR is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is The Gap (GPS) 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.
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.
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 The Gap (GPS - Free Report) . GPS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors should also recognize that GPS has a P/B ratio of 3.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.14. GPS's P/B has been as high as 3.31 and as low as 1.25, with a median of 1.73, over the past year.
Finally, our model also underscores that GPS has a P/CF ratio of 12.96. 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. GPS's P/CF compares to its industry's average P/CF of 13.95. Over the past 52 weeks, GPS's P/CF has been as high as 15.37 and as low as 5.38, with a median of 8.28.
Investors could also keep in mind Tapestry (TPR - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Tapestry is trading at a forward earnings multiple of 9.92 at the moment, with a PEG ratio of 0.86. This compares to its industry's average P/E of 15.66 and average PEG ratio of 0.98.
Over the past year, TPR's P/E has been as high as 11.52, as low as 6.25, with a median of 9.41; its PEG ratio has been as high as 0.92, as low as 0.54, with a median of 1.22 during the same time period.
Tapestry also has a P/B ratio of 4.08 compared to its industry's price-to-book ratio of 4.14. Over the past year, its P/B ratio has been as high as 4.63, as low as 2.50, with a median of 3.90.
These are just a handful of the figures considered in The Gap and Tapestry'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 GPS and TPR is an impressive value stock right now.