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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Guess (GES - Free Report) . GES is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.57, while its industry has an average P/E of 16.14. Over the past year, GES's Forward P/E has been as high as 8.71 and as low as 5.87, with a median of 7.14.
Investors should also recognize that GES has a P/B ratio of 2.44. The P/B ratio pits a stock's market value against 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 6.86. GES's P/B has been as high as 2.48 and as low as 1.71, with a median of 2.16, over the past year.
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. GES has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.89.
Finally, we should also recognize that GES has a P/CF ratio of 7.34. 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. GES's P/CF compares to its industry's average P/CF of 28.87. GES's P/CF has been as high as 8.28 and as low as 4.89, with a median of 6.58, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Guess is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GES feels like a great value stock at the moment.
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Should Value Investors Buy Guess (GES) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Guess (GES - Free Report) . GES is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.57, while its industry has an average P/E of 16.14. Over the past year, GES's Forward P/E has been as high as 8.71 and as low as 5.87, with a median of 7.14.
Investors should also recognize that GES has a P/B ratio of 2.44. The P/B ratio pits a stock's market value against 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 6.86. GES's P/B has been as high as 2.48 and as low as 1.71, with a median of 2.16, over the past year.
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. GES has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.89.
Finally, we should also recognize that GES has a P/CF ratio of 7.34. 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. GES's P/CF compares to its industry's average P/CF of 28.87. GES's P/CF has been as high as 8.28 and as low as 4.89, with a median of 6.58, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Guess is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GES feels like a great value stock at the moment.