Back to top

Should Value Investors Buy Caleres Inc. (CAL) Stock?

Read MoreHide Full Article

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Caleres Inc. (CAL - Free Report) . CAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.46. This compares to its industry's average Forward P/E of 25.65. Over the past 52 weeks, CAL's Forward P/E has been as high as 15.46 and as low as 10.53, with a median of 13.08.

Investors should also note that CAL holds a PEG ratio of 1.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAL's PEG compares to its industry's average PEG of 2.27. Over the past 52 weeks, CAL's PEG has been as high as 1.29 and as low as 0.96, with a median of 1.18.

Finally, investors will want to recognize that CAL has a P/CF ratio of 10.91. 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 42.42. CAL's P/CF has been as high as 11.26 and as low as 7.59, with a median of 9.54, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Caleres Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAL feels like a great value stock at the moment.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Caleres, Inc. (CAL) - free report >>

More from Zacks Tale of the Tape

You May Like