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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Boot Barn (BOOT - Free Report) . BOOT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.07 right now. For comparison, its industry sports an average P/E of 12.66. Over the past year, BOOT's Forward P/E has been as high as 26.30 and as low as 11.17, with a median of 20.56.
Investors will also notice that BOOT has a PEG ratio of 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BOOT's industry has an average PEG of 1.09 right now. Over the last 12 months, BOOT's PEG has been as high as 1.68 and as low as 0.49, with a median of 0.98.
We should also highlight that BOOT has a P/B ratio of 2.02. 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 attractive against its industry's average P/B of 3.37. BOOT's P/B has been as high as 3.88 and as low as 1.87, with a median of 2.72, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Boot Barn is likely undervalued currently. And when considering the strength of its earnings outlook, BOOT sticks out at as one of the market's strongest value stocks.