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Are Investors Undervaluing Land's End (LE) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

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.

Land's End (LE - Free Report) is a stock many investors are watching right now. LE is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

We should also highlight that LE has a P/B ratio of 2.09. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.09. Over the past year, LE's P/B has been as high as 2.75 and as low as 1.03, with a median of 1.73.

Finally, investors will want to recognize that LE has a P/CF ratio of 10.64. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.65. Within the past 12 months, LE's P/CF has been as high as 45.19 and as low as 5.40, with a median of 8.93.

Value investors will likely look at more than just these metrics, but the above data helps show that Land's End is likely undervalued currently. And when considering the strength of its earnings outlook, LE sticks out as one of the market's strongest value stocks.


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