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Are Investors Undervaluing Sally Beauty (SBH) 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.
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 Sally Beauty (SBH - Free Report) . SBH is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.4, which compares to its industry's average of 18.81. SBH's Forward P/E has been as high as 8.12 and as low as 4.04, with a median of 5.51, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SBH has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.81.
These are only a few of the key metrics included in Sally Beauty'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, SBH looks like an impressive value stock at the moment.
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Are Investors Undervaluing Sally Beauty (SBH) Right Now?
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.
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 Sally Beauty (SBH - Free Report) . SBH is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.4, which compares to its industry's average of 18.81. SBH's Forward P/E has been as high as 8.12 and as low as 4.04, with a median of 5.51, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SBH has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.81.
These are only a few of the key metrics included in Sally Beauty'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, SBH looks like an impressive value stock at the moment.