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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Macy's (M - Free Report) is a stock many investors are watching right now. M is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.05. This compares to its industry's average Forward P/E of 11.02. M's Forward P/E has been as high as 11.55 and as low as 7.12, with a median of 9.37, all within the past year.
We also note that M holds a PEG ratio of 0.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. M's industry currently sports an average PEG of 1.38. Within the past year, M's PEG has been as high as 1.36 and as low as 0.84, with a median of 1.10.
Another notable valuation metric for M is its P/B ratio of 1.62. 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 1.91. Over the past 12 months, M's P/B has been as high as 2.18 and as low as 1.26, with a median of 1.79.
Finally, investors should note that M has a P/CF ratio of 3.54. 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. M's P/CF compares to its industry's average P/CF of 4.71. M's P/CF has been as high as 5.02 and as low as 2.89, with a median of 4.08, all within the past year.
These are just a handful of the figures considered in Macy's's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that M is an impressive value stock right now.
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Are Investors Undervaluing Macy's (M) Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Macy's (M - Free Report) is a stock many investors are watching right now. M is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.05. This compares to its industry's average Forward P/E of 11.02. M's Forward P/E has been as high as 11.55 and as low as 7.12, with a median of 9.37, all within the past year.
We also note that M holds a PEG ratio of 0.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. M's industry currently sports an average PEG of 1.38. Within the past year, M's PEG has been as high as 1.36 and as low as 0.84, with a median of 1.10.
Another notable valuation metric for M is its P/B ratio of 1.62. 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 1.91. Over the past 12 months, M's P/B has been as high as 2.18 and as low as 1.26, with a median of 1.79.
Finally, investors should note that M has a P/CF ratio of 3.54. 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. M's P/CF compares to its industry's average P/CF of 4.71. M's P/CF has been as high as 5.02 and as low as 2.89, with a median of 4.08, all within the past year.
These are just a handful of the figures considered in Macy's's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that M is an impressive value stock right now.