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Should Value Investors Buy Seven and I Holdings Co. (SVNDY) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Seven and I Holdings Co. (SVNDY - Free Report) . SVNDY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.69. This compares to its industry's average Forward P/E of 16.37. SVNDY's Forward P/E has been as high as 19.06 and as low as 9.88, with a median of 12.97, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SVNDY has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.77.

Finally, our model also underscores that SVNDY has a P/CF ratio of 8.08. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SVNDY's P/CF compares to its industry's average P/CF of 18.24. SVNDY's P/CF has been as high as 8.49 and as low as 5.65, with a median of 7.29, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Seven and I Holdings Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SVNDY feels like a great value stock at the moment.


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