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Should Value Investors Buy Levi Strauss & Co. (LEVI) 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, 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Levi Strauss & Co. (LEVI - Free Report) . LEVI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

LEVI is also sporting a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LEVI's industry currently sports an average PEG of 1.26. Over the last 12 months, LEVI's PEG has been as high as 3.19 and as low as 0.44, with a median of 0.55.

We should also highlight that LEVI has a P/B ratio of 4.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. LEVI's current P/B looks attractive when compared to its industry's average P/B of 4.64. LEVI's P/B has been as high as 4.57 and as low as 2.62, with a median of 3.02, over the past year.

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


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