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Is Seven and I Holdings Co. (SVNDY) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Seven and I Holdings Co. (SVNDY - Free Report) . SVNDY is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.36 right now. For comparison, its industry sports an average P/E of 18.18. 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SVNDY has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.79.

Finally, investors should note that SVNDY has a P/CF ratio of 7.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SVNDY's P/CF compares to its industry's average P/CF of 20.30. SVNDY's P/CF has been as high as 8.49 and as low as 5.65, with a median of 7.40, all within the past year.

These are only a few of the key metrics included in Seven and I Holdings Co.'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, SVNDY looks like an impressive value stock at the moment.


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