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Should Value Investors Buy Seven and I Holdings Co. (SVNDY) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Seven and I Holdings Co. (SVNDY - Free Report) . SVNDY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.36, while its industry has an average P/E of 18.71. Over the past year, SVNDY's Forward P/E has been as high as 14.02 and as low as 7.22, with a median of 8.41.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SVNDY has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.5.

Value investors will likely look at more than just these metrics, but the above data helps show that Seven and I Holdings Co. Is likely undervalued currently. And when considering the strength of its earnings outlook, SVNDY sticks out at as one of the market's strongest value stocks.


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