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Is Signet (SIG) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company value investors might notice is Signet (SIG - Free Report) . SIG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.18, which compares to its industry's average of 14.73. SIG's Forward P/E has been as high as 16.58 and as low as 6.33, with a median of 9.61, all within the past year.

Investors should also recognize that SIG has a P/B ratio of 2.30. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.38. Over the past 12 months, SIG's P/B has been as high as 2.51 and as low as 0.86, with a median of 1.60.

Finally, investors will want to recognize that SIG has a P/CF ratio of 7.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.48. Within the past 12 months, SIG's P/CF has been as high as 8.07 and as low as 3.33, with a median of 5.23.

These are only a few of the key metrics included in Signet'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, SIG looks like an impressive value stock at the moment.


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