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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is Carter's (CRI - Free Report) . CRI is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.92, which compares to its industry's average of 22.71. Over the past year, CRI's Forward P/E has been as high as 14.58 and as low as 7.27, with a median of 10.72.
We also note that CRI holds a PEG ratio of 2.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRI's industry currently sports an average PEG of 3.04. Over the past 52 weeks, CRI's PEG has been as high as 4.51 and as low as 2.70, with a median of 3.52.
Another valuation metric that we should highlight is CRI's P/B ratio of 1.33. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CRI's current P/B looks attractive when compared to its industry's average P/B of 3.61. Over the past 12 months, CRI's P/B has been as high as 3.16 and as low as 1.01, with a median of 1.73.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CRI has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.85.
Finally, we should also recognize that CRI has a P/CF ratio of 4.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.93. CRI's P/CF has been as high as 8.34 and as low as 3.76, with a median of 5.40, all within the past year.
These are only a few of the key metrics included in Carter's'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, CRI looks like an impressive value stock at the moment.
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Is Carter's (CRI) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is Carter's (CRI - Free Report) . CRI is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.92, which compares to its industry's average of 22.71. Over the past year, CRI's Forward P/E has been as high as 14.58 and as low as 7.27, with a median of 10.72.
We also note that CRI holds a PEG ratio of 2.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRI's industry currently sports an average PEG of 3.04. Over the past 52 weeks, CRI's PEG has been as high as 4.51 and as low as 2.70, with a median of 3.52.
Another valuation metric that we should highlight is CRI's P/B ratio of 1.33. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CRI's current P/B looks attractive when compared to its industry's average P/B of 3.61. Over the past 12 months, CRI's P/B has been as high as 3.16 and as low as 1.01, with a median of 1.73.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CRI has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.85.
Finally, we should also recognize that CRI has a P/CF ratio of 4.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.93. CRI's P/CF has been as high as 8.34 and as low as 3.76, with a median of 5.40, all within the past year.
These are only a few of the key metrics included in Carter's'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, CRI looks like an impressive value stock at the moment.