Back to top

Image: Bigstock

Is Zumiez (ZUMZ) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Zumiez (ZUMZ - Free Report) . ZUMZ is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. ZUMZ has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.47.

Finally, investors will want to recognize that ZUMZ has a P/CF ratio of 15.16. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.64. ZUMZ's P/CF has been as high as 15.89 and as low as -16.39, with a median of 10.28, all within the past year.

These are just a handful of the figures considered in Zumiez's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ZUMZ is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Zumiez Inc. (ZUMZ) - free report >>

Published in