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Is Burlington Stores (BURL) a Great Value Stock Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 value investors might notice is Burlington Stores (BURL - Free Report) . BURL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 25.80. This compares to its industry's average Forward P/E of 28.78. Over the past year, BURL's Forward P/E has been as high as 34.37 and as low as 16.53, with a median of 25.43.

Investors will also notice that BURL has a PEG ratio of 1.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BURL's PEG compares to its industry's average PEG of 2.70. Over the past 52 weeks, BURL's PEG has been as high as 1.31 and as low as 0.51, with a median of 0.78.

Another notable valuation metric for BURL is its P/B ratio of 12.78. 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. BURL's current P/B looks attractive when compared to its industry's average P/B of 13.28. BURL's P/B has been as high as 16.19 and as low as 9, with a median of 13.14, over the past year.

Finally, investors will want to recognize that BURL has a P/CF ratio of 19.76. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 27.65. Over the past 52 weeks, BURL's P/CF has been as high as 25.69 and as low as 13.05, with a median of 19.80.

If you're looking for another solid Retail - Discount Stores value stock, take a look at Target (TGT - Free Report) . TGT is a # 2 (Buy) stock with a Value score of A.

Shares of Target currently holds a Forward P/E ratio of 17.66, and its PEG ratio is 1.55. In comparison, its industry sports average P/E and PEG ratios of 28.78 and 2.70.

TGT's price-to-earnings ratio has been as high as 19.21 and as low as 12.31, with a median of 15.02, while its PEG ratio has been as high as 1.63 and as low as 0.87, with a median of 1.05, all within the past year.

Additionally, Target has a P/B ratio of 5.83 while its industry's price-to-book ratio sits at 13.28. For TGT, this valuation metric has been as high as 6.95, as low as 3.94, with a median of 5.17 over the past year.

These are only a few of the key metrics included in Burlington Stores and Target strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BURL and TGT look like an impressive value stock at the moment.


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