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Should Value Investors Buy Burlington Stores (BURL) Stock?
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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.
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.
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 stock to keep an eye on is Burlington Stores (BURL - Free Report) . BURL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 29.88 right now. For comparison, its industry sports an average P/E of 29.91. BURL's Forward P/E has been as high as 34.37 and as low as 16.53, with a median of 25.43, all within the past year.
Investors will also notice that BURL has a PEG ratio of 1.10. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BURL's PEG compares to its industry's average PEG of 3.06. Within the past year, BURL's PEG has been as high as 1.27 and as low as 0.51, with a median of 0.78.
Another valuation metric that we should highlight is BURL's P/B ratio of 14.21. 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 attractive against its industry's average P/B of 14.29. Over the past year, BURL's P/B has been as high as 17.50 and as low as 9, with a median of 13.21.
Finally, we should also recognize that BURL has a P/CF ratio of 21.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.96. Over the past 52 weeks, BURL's P/CF has been as high as 27.77 and as low as 13.05, with a median of 19.86.
These are only a few of the key metrics included in Burlington Stores's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BURL looks like an impressive value stock at the moment.
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Should Value Investors Buy Burlington Stores (BURL) Stock?
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.
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.
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 stock to keep an eye on is Burlington Stores (BURL - Free Report) . BURL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 29.88 right now. For comparison, its industry sports an average P/E of 29.91. BURL's Forward P/E has been as high as 34.37 and as low as 16.53, with a median of 25.43, all within the past year.
Investors will also notice that BURL has a PEG ratio of 1.10. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BURL's PEG compares to its industry's average PEG of 3.06. Within the past year, BURL's PEG has been as high as 1.27 and as low as 0.51, with a median of 0.78.
Another valuation metric that we should highlight is BURL's P/B ratio of 14.21. 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 attractive against its industry's average P/B of 14.29. Over the past year, BURL's P/B has been as high as 17.50 and as low as 9, with a median of 13.21.
Finally, we should also recognize that BURL has a P/CF ratio of 21.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.96. Over the past 52 weeks, BURL's P/CF has been as high as 27.77 and as low as 13.05, with a median of 19.86.
These are only a few of the key metrics included in Burlington Stores's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BURL looks like an impressive value stock at the moment.