Back to top

Image: Bigstock

Are Investors Undervaluing Hugo Boss (BOSSY) Right Now?

Read MoreHide Full Article

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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Hugo Boss (BOSSY - Free Report) . BOSSY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.28 right now. For comparison, its industry sports an average P/E of 17.16. BOSSY's Forward P/E has been as high as 14.17 and as low as 8.38, with a median of 11.29, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BOSSY has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.64.

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

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in