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Are Investors Undervaluing Land's End (LE) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Land's End (LE - Free Report) . LE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for LE is its P/B ratio of 1.70. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.80. LE's P/B has been as high as 1.95 and as low as 0.54, with a median of 1.02, over the past year.

Finally, investors will want to recognize that LE has a P/CF ratio of 23.94. 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 25.31. Over the past 52 weeks, LE's P/CF has been as high as 27.40 and as low as 8.07, with a median of 12.67.

These are only a few of the key metrics included in Land's End'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, LE looks like an impressive value stock at the moment.


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