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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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.
Macy's (M - Free Report) is a stock many investors are watching right now. M is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 9.15, while its industry has an average P/E of 16.39. Over the last 12 months, M's Forward P/E has been as high as 9.61 and as low as 4.69, with a median of 6.13.
Another valuation metric that we should highlight is M's P/B ratio of 1.06. The P/B ratio pits a stock's market value against 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 2.21. Over the past 12 months, M's P/B has been as high as 1.21 and as low as 0.61, with a median of 0.86.
Finally, investors will want to recognize that M has a P/CF ratio of 3.47. 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. M's P/CF compares to its industry's average P/CF of 7.67. Over the past year, M's P/CF has been as high as 5.04 and as low as 1.92, with a median of 2.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Macy's is likely undervalued currently. And when considering the strength of its earnings outlook, M sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Macy's (M) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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.
Macy's (M - Free Report) is a stock many investors are watching right now. M is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 9.15, while its industry has an average P/E of 16.39. Over the last 12 months, M's Forward P/E has been as high as 9.61 and as low as 4.69, with a median of 6.13.
Another valuation metric that we should highlight is M's P/B ratio of 1.06. The P/B ratio pits a stock's market value against 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 2.21. Over the past 12 months, M's P/B has been as high as 1.21 and as low as 0.61, with a median of 0.86.
Finally, investors will want to recognize that M has a P/CF ratio of 3.47. 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. M's P/CF compares to its industry's average P/CF of 7.67. Over the past year, M's P/CF has been as high as 5.04 and as low as 1.92, with a median of 2.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Macy's is likely undervalued currently. And when considering the strength of its earnings outlook, M sticks out as one of the market's strongest value stocks.