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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.
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 stock to keep an eye on is Macy's (M - Free Report) . M is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.15, while its industry has an average P/E of 16.04. M's Forward P/E has been as high as 9.61 and as low as 4.69, with a median of 6.13, all within the past year.
Investors should also recognize that M has a 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. M's current P/B looks attractive when compared to its industry's average P/B of 2.47. Within the past 52 weeks, M's P/B has been as high as 1.21 and as low as 0.61, with a median of 0.86.
Finally, our model also underscores 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 8.60. Over the past 52 weeks, 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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Are Investors Undervaluing Macy's (M) Right Now?
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.
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 stock to keep an eye on is Macy's (M - Free Report) . M is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.15, while its industry has an average P/E of 16.04. M's Forward P/E has been as high as 9.61 and as low as 4.69, with a median of 6.13, all within the past year.
Investors should also recognize that M has a 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. M's current P/B looks attractive when compared to its industry's average P/B of 2.47. Within the past 52 weeks, M's P/B has been as high as 1.21 and as low as 0.61, with a median of 0.86.
Finally, our model also underscores 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 8.60. Over the past 52 weeks, 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.