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Are Investors Undervaluing Express (EXPR) 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.

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 stock to keep an eye on is Express . EXPR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

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. EXPR has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.55.

Finally, investors will want to recognize that EXPR has a P/CF ratio of 4.50. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EXPR's P/CF compares to its industry's average P/CF of 7.76. EXPR's P/CF has been as high as 8.39 and as low as 4.50, with a median of 5.91, all within the past year.

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

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