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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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now 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 has a Forward P/E ratio of 28.08. This compares to its industry's average Forward P/E of 29.37. Over the past 52 weeks, BURL's Forward P/E has been as high as 34.37 and as low as 16.53, with a median of 27.91.

Investors should also note that BURL holds a PEG ratio of 1.13. 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 industry has an average PEG of 3.27 right now. 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 1.07.

Finally, investors should note that BURL has a P/CF ratio of 21.54. 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 stock's P/CF looks attractive against its industry's average P/CF of 28.88. Over the past year, BURL's P/CF has been as high as 23.51 and as low as 13.05, with a median of 21.11.

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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