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Is J.Jill (JILL) Stock Undervalued Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

One stock to keep an eye on is J.Jill (JILL - Free Report) . JILL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.24, while its industry has an average P/E of 15.05. Over the past year, JILL's Forward P/E has been as high as 13.68 and as low as 5.16, with a median of 10.10.

We also note that JILL holds a PEG ratio of 0.94. 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. JILL's industry currently sports an average PEG of 1.45. Over the past 52 weeks, JILL's PEG has been as high as 1.09 and as low as 0.27, with a median of 0.56.

Another valuation metric that we should highlight is JILL's P/B ratio of 1.89. 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. JILL's current P/B looks attractive when compared to its industry's average P/B of 4.43. Over the past 12 months, JILL's P/B has been as high as 4.17 and as low as 1.04, with a median of 2.04.

Finally, we should also recognize that JILL has a P/CF ratio of 3.72. 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 9.34. Over the past year, JILL's P/CF has been as high as 8.69 and as low as 1.99, with a median of 3.99.

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


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