We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
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.
Best Buy (BBY - Free Report) is a stock many investors are watching right now. BBY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11. This compares to its industry's average Forward P/E of 12.00. Over the past year, BBY's Forward P/E has been as high as 15.48 and as low as 8.74, with a median of 11.63.
Investors will also notice that BBY has a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBY's PEG compares to its industry's average PEG of 2.04. Over the past 52 weeks, BBY's PEG has been as high as 2.54 and as low as 1.27, with a median of 1.88.
Investors should also recognize that BBY has a P/B ratio of 5.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.86. Over the past year, BBY's P/B has been as high as 7.17 and as low as 4.28, with a median of 5.78.
Finally, we should also recognize that BBY has a P/CF ratio of 7.28. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.51. Over the past 52 weeks, BBY's P/CF has been as high as 10.45 and as low as 5.33, with a median of 7.51.
These are only a few of the key metrics included in Best Buy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BBY looks like an impressive value stock at the moment.
View the Zacks #1 Rank List
Image: Bigstock
Should Value Investors Buy Best Buy (BBY) 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.
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.
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.
Best Buy (BBY - Free Report) is a stock many investors are watching right now. BBY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11. This compares to its industry's average Forward P/E of 12.00. Over the past year, BBY's Forward P/E has been as high as 15.48 and as low as 8.74, with a median of 11.63.
Investors will also notice that BBY has a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBY's PEG compares to its industry's average PEG of 2.04. Over the past 52 weeks, BBY's PEG has been as high as 2.54 and as low as 1.27, with a median of 1.88.
Investors should also recognize that BBY has a P/B ratio of 5.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.86. Over the past year, BBY's P/B has been as high as 7.17 and as low as 4.28, with a median of 5.78.
Finally, we should also recognize that BBY has a P/CF ratio of 7.28. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.51. Over the past 52 weeks, BBY's P/CF has been as high as 10.45 and as low as 5.33, with a median of 7.51.
These are only a few of the key metrics included in Best Buy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BBY looks like an impressive value stock at the moment.