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Should Value Investors Buy Abercrombie & Fitch (ANF) Stock?

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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, 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 stock to keep an eye on is Abercrombie & Fitch (ANF - Free Report) . ANF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 14.94, which compares to its industry's average of 15.31. Over the past year, ANF's Forward P/E has been as high as 22.05 and as low as 11.21, with a median of 15.97.

Finally, investors should note that ANF has a P/CF ratio of 12.73. 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 13.07. Over the past year, ANF's P/CF has been as high as 16.01 and as low as 6.60, with a median of 11.32.

J.Jill (JILL - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. JILL is a # 2 (Buy) stock with a Value grade of A.

J.Jill also has a P/B ratio of 7.39 compared to its industry's price-to-book ratio of 3.99. Over the past year, its P/B ratio has been as high as 78.89, as low as -1,222.41, with a median of 10.55.

These are only a few of the key metrics included in Abercrombie & Fitch and J.Jill strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ANF and JILL look like an impressive value stock at the moment.


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