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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Macy's (M - Free Report) . M is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.21, while its industry has an average P/E of 12.18. Over the last 12 months, M's Forward P/E has been as high as 11.55 and as low as 7.12, with a median of 9.51.
Investors will also notice that M has a PEG ratio of 1.08. 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. M's industry currently sports an average PEG of 1.53. M's PEG has been as high as 1.36 and as low as 0.84, with a median of 1.12, all within the past year.
Investors should also recognize that M has a P/B ratio of 1.87. 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 2.11. Within the past 52 weeks, M's P/B has been as high as 2.18 and as low as 1.26, with a median of 1.82.
Finally, investors will want to recognize that M has a P/CF ratio of 4.11. 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 5.20. Over the past year, M's P/CF has been as high as 5.02 and as low as 2.89, with a median of 4.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Macy's is likely undervalued currently. And when considering the strength of its earnings outlook, M sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Macy's (M) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Macy's (M - Free Report) . M is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.21, while its industry has an average P/E of 12.18. Over the last 12 months, M's Forward P/E has been as high as 11.55 and as low as 7.12, with a median of 9.51.
Investors will also notice that M has a PEG ratio of 1.08. 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. M's industry currently sports an average PEG of 1.53. M's PEG has been as high as 1.36 and as low as 0.84, with a median of 1.12, all within the past year.
Investors should also recognize that M has a P/B ratio of 1.87. 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 2.11. Within the past 52 weeks, M's P/B has been as high as 2.18 and as low as 1.26, with a median of 1.82.
Finally, investors will want to recognize that M has a P/CF ratio of 4.11. 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 5.20. Over the past year, M's P/CF has been as high as 5.02 and as low as 2.89, with a median of 4.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Macy's is likely undervalued currently. And when considering the strength of its earnings outlook, M sticks out at as one of the market's strongest value stocks.